The Figure Given Below Shows the Demand [D and D']

question 75

Multiple Choice

The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock. Figure 16.2
-According to Figure 16.2,what sort of change in the market environment would increase the supply of stocks from S to S' and decrease the demand from D to D'?

• A)A perceived increase in the firms' expected future profits
• B)A new perception that the economy is about to enter a period of expansion
• C)News revealing that stocks prices will increase in the future
• D)News that the economy is likely go into a recession soon
• E)A perceived improvement in the firms' performance compared to the last year

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Definitions:

Long-Term Memory

The phase of memory that involves the storage of information over an extended period of time, from hours to a lifetime.

Analogy

A comparison between two things, typically for the purpose of explanation or clarification.

Conceptualized

The process of forming a concept or idea by synthesizing and organizing information.

Declarative Memory

The subsystem within long-term memory that stores facts, information, and personal life events that can be brought to mind verbally or in the form of images and then declared or stated; also called explicit memory.