Which of the Following Statements Is an Example of the Wealth

question 33

Multiple Choice

Which of the following statements is an example of the wealth effect?

• A)If people feel wealthier because their stock portfolios have risen,they tend to increase their consumption of goods and services.
• B)One of the many factors that caused the Great Depression was that by 1930 the market for consumer durables was saturated.
• C)When wealthy people expect a recession they tend to postpone major purchases until times get better.
• D)When people expect inflation they often buy consumer durables before prices go up.

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Financial instruments that represent ownership in a company or corporation, entitling the holder to a portion of its assets and profits.

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Assistance provided in legal matters, whether through direct legal representation or through advice and information regarding laws and legal processes.

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Healthcare facilities that provide outpatient medical services, treatments, or consultations.

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