An Increase in Which of the Following Would Lead to Decrease

question 19

Multiple Choice

An increase in which of the following would lead to decrease in equilibrium output and an increase in equilibrium prices?

• A) positive demand shock
• B) negative demand shock
• C) positive supply shock
• D) negative supply shock

---

Definitions:

U.S. Securities

Financial instruments issued by the U.S. government, corporations or other entities, including stocks, bonds, and treasury securities.

World Equities

Refers to stocks and equity securities from companies around the globe, allowing investors to diversify their portfolio internationally.

Home Bias

The tendency of investors to allocate a greater share of their portfolios to domestic securities than would be the case under neutral diversification.

Overweight Investments

An investment strategy where a portfolio holds a higher percentage of a particular security or sector than the benchmark against which it is compared.