What Is the Likely Chain of Events If Asset Prices

question 279

Multiple Choice

What is the likely chain of events if asset prices rise?

• A) People feel poorer, so their spending falls and their saving rises, causing interest rates to fall.
• B) People feel wealthier, so their spending falls and their saving rises, causing interest rates to fall.
• C) People feel wealthier, so their spending rises and their saving rises, causing interest rates to fall.
• D) People feel wealthier, so their spending rises and their saving falls, causing interest rates to rise.

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Definitions:

U.S. Economy

The U.S. economy, one of the world's largest, is characterized by a high level of output per capita and a diverse array of industries including technology, finance, and services.

Influence

The capacity to have an effect on the character, development, or behavior of someone or something, or the effect itself.

Antiglobalization

A social movement that opposes the processes of global integration, focusing on issues like economic inequality and environmental degradation.

Anti-Americanism

A sentiment of hostility or opposition towards the United States, its policies, culture, or people.