A Declining Stock Market Index Due to Lower Share Prices

question 5

Multiple Choice

A declining stock market index due to lower share prices

• A) reduces people's wealth and as a result may reduce their willingness to spend.
• B) increases people's wealth and as a result may increase their willingness to spend.
• C) decreases the amount of funds that business firms can raise by selling newly issued stock.
• D) both A and C of the above.
• E) both B and C of the above.

---

Definitions:

Phenotype

An individual’s observable traits.

Directional Selection

A mode of natural selection where individuals with traits on one end of the spectrum are more likely to survive and reproduce, causing a shift in the population's genetic makeup.

Tree-Dwelling Frog

Amphibians that spend a significant portion of their lives in trees, exhibiting adaptations such as suction cup-like toe pads to aid in climbing.

Heritable Characteristic

A trait that can be passed from parents to their offspring through genes.