Stocks Tend to Move Together If They Are Affected by ________

question 80

Multiple Choice

Stocks tend to move together if they are affected by ________.

• A) company specific events
• B) common economic events
• C) events unrelated to the economy
• D) idiosyncratic shocks

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Definitions:

Government-mandated Increase

A requirement imposed by the government that results in a rise, often relating to wages, prices, or taxes.

Demand and Supply Curves

Graphs used in economics to illustrate the relationship between how much of a good or service is desired by buyers (demand) and how much is available from suppliers (supply) at various prices.

Product Market

A market in which products are sold by firms and bought by households.

Equilibrium

A state in which market supply and demand balance each other, and, as a result, prices become stable.