Which Action Might We Logically Expect to Result from Rising

question 63

Multiple Choice

Which action might we logically expect to result from rising stock prices?

• A) increased household wealth leading to increased consumption spending
• B) firms sell fewer shares of new stock
• C) firms spend less on investment
• D) people will save more and consume less

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Definitions:

Order Paper

A negotiable instrument that is payable to a specific person or their order, allowing the transfer of ownership through endorsement.

Special Indorsement

An endorsement on a negotiable instrument that specifies the person to whom, or to whose order, the instrument can be paid.

Blank Indorsement

A type of endorsement on a negotiable instrument where the endorser does not specify an endorsee, making it payable to the bearer.

Restrictive Indorsement

A limit placed on the use of a check or other negotiable instrument which specifies the conditions under which it can be transferred or paid out.