If a Reduction in Stock Prices Reduces the Real Wealth

question 119

Multiple Choice

If a reduction in stock prices reduces the real wealth of Americans, the

• A) aggregate demand curve will shift to the left.
• B) long-run aggregate supply will shift to the left.
• C) general price level will increase.
• D) aggregate demand curve will shift to the right.

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Definitions:

Furnishings

Items designed to make a space such as a room or building suitable for living or working in, including furniture, floor coverings, and decorations.

Limitations Period

A set period of time within which a legal claim must be filed or be permanently barred.

Breach

A violation or infringement of a law, obligation, standard, or agreement.

Commercially Impracticable

A doctrine where parties are relieved from their contractual duties when events have occurred making performance excessively difficult or costly.