A Sharp Rise in the Real Value of Stock Prices

question 48

Multiple Choice

A sharp rise in the real value of stock prices, which is independent of a change in the price level, would best be an example of

• A) the interest-rate effect.
• B) the real-balances effect.
• C) a change in the degree of excess capacity.
• D) a change in the real value of consumer wealth.

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Definitions:

Negatively Reinforced

A process in behavior modification where the removal of an unfavorable stimulus strengthens a particular behavior.

Id Impulses

Id impulses refer to the innate and primitive desires and urges, often sexual or aggressive in nature, that stem from the id part of the personality in Freudian psychology.

Superego

According to Freud, the psychological force that represents a person’s values and ideals.

Ego Defenses

Psychological strategies employed by the ego to manage anxiety, conflict, and internal or external stressors.