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

question 104

Multiple Choice

The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2

-Which of the following factors leads to a drastic rise in the price of assets?

• A)Increased supply of assets
• B)Increase in the market rate of interest
• C)Reduced demand for money
• D)Increased liquidity in the economy
• E)Contractionary monetary and fiscal policies being undertaken by the government

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Definitions:

Budget Equation

A balance formula that represents the relationship between income, expenses, and savings within a specified period.

Entry Fee

A charge that must be paid to gain access to a particular service, activity, or location.

Consumption

Refers to the act of using goods and services to satisfy needs and wants.

Income

The money received on a regular basis for work or through investments.