An Example of a Positive Demand Shock Is

question 52

Multiple Choice

An example of a positive demand shock is

• A) a decrease in the money supply.
• B) a decrease in government spending.
• C) a decrease in foreign export demand.
• D) a decrease in the price of imported oil.
• E) a decrease in tax rates.

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Definitions:

Par Common Stock

Common stock issued with a nominal or face value, used primarily for accounting purposes and often set at a low amount.

Treasury Stock

Stocks that the issuing company originally sold and then bought back, lowering the total number of shares available for trade on the market.

Fair Market

The price that an asset would sell for on the open market, under all conditions requisite to a fair sale.

Stock Dividend

A form of dividend payment made by a company to its shareholders in the form of additional shares rather than cash.