All Else Being Equal, When People Become Less Optimistic About

question 60

Multiple Choice

All else being equal, when people become less optimistic about a company's future, then:

• A)the demand for the stock (and thus the price) rises
• B)the demand for the stock (and thus the price) falls
• C)the supply of the stock (and thus the price) rises
• D)the supply of the stock (and thus the price) falls

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Definitions:

FTC

Stands for Federal Trade Commission, an independent agency of the United States government aimed at promoting consumer protection and the elimination and prevention of anticompetitive business practices.

Material Misrepresentations

False statements or omissions of significant facts that, if known, could influence the decision of the party to whom they are made.

European Union

A political and economic union of 27 member states that are located primarily in Europe, established to foster economic cooperation and has its own currency, the euro, used by 19 of its member states.

Misleading Advertising

Promotional activities that deceive or trick the audience into believing something that is not true or not entirely accurate.