When Stock Prices Fall

question 41

Multiple Choice

When stock prices fall

• A)an individual's wealth is not affected nor is their willingness to spend.
• B)a business firm will be more likely to sell stock to finance investment spending.
• C)an individual's wealth may decrease but their willingness to spend is not affected.
• D)an individual's wealth may decrease and their willingness to spend may decrease.

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Definitions:

Conscious Decision

A deliberate choice or determination made with full awareness and intent.

Hibernation

A state of minimal activity and metabolic depression in animals during winter to conserve energy by lowering the body temperature.

Sexually Receptive

A state or condition of being open and responsive to sexual stimuli or advances.

Ground Squirrels

Small rodents of the Sciuridae family, known for their burrowing habits and significant role in ecosystems as prey and seed dispersers.