Suppose That as a Result of a Stock Market Boom

question 470

Multiple Choice

Suppose that as a result of a stock market boom, consumers become less concerned about saving for retirement and increase their current consumption expenditures. Which of the following would you expect to occur as a result of this change?

• A)In the short run, unemployment will increase and inflation will fall.
• B)​In the short run, unemployment will increase and inflation will rise.
• C)​In the short run, unemployment will decrease and inflation will rise.
• D)​In the short run, unemployment will decrease and inflation will fall.

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Definitions:

Depressants

Drugs (such as alcohol, barbiturates, and opiates) that reduce neural activity and slow body functions.

Neural Activity

The functioning and signaling processes within neurons, including action potentials and synaptic transmission.

Body Functions

Pertains to the physiological operations of the body, including the activities of organs and systems essential for maintaining life and health.

Tolerance

The capacity to endure continued subjection to something, such as a drug or environmental conditions, without adverse reaction.