If There Is a Leftward Shift in the Supply Curve

question 25

Multiple Choice

If there is a leftward shift in the supply curve for money, interest rates will

• A)remain the same.
• B)fall, and then stabilize.
• C)rise.
• D)fall.

---

Definitions:

Market Value

The current price at which an asset or service can be bought or sold in the open market.

Common Stock

Common stock represents ownership shares in a corporation, entitling holders to vote at shareholder meetings and receive dividends.

Dividends

Disbursements from a company to its owners, typically representing a share of the earnings.

Short-term Speculation

Financial transactions or investments made with the expectation of significant returns in a short period, often characterized by high risk.