All Else Equal,when People Become More Optimistic About a Company's

question 85

Multiple Choice

All else equal,when people become more optimistic about a company's future,the

• A)supply of the stock and the price will both rise.
• B)supply of the stock and the price will both fall.
• C)demand for the stock and the price will both rise.
• D)demand for the stock and the price will both fall.

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Definitions:

Government Income Transfers

Payments made by the government to individuals without the requirement of an exchange of goods or services, such as welfare benefits or social security.

Representative Democracy

A form of government in which citizens vote for representatives who then make policy decisions on their behalf.

Rent-seeking Activities

Economic actions taken by individuals or groups to earn income by capturing wealth through manipulation or exploitation of the political environment, rather than through productive economic activities.

Political Process

The mechanism through which public decisions are made, encompassing election campaigns, legislative procedures, and public policy formulation.