A Sharp Rise in the Real Value of Stock Prices

question 147

Multiple Choice

A sharp rise in the real value of stock prices, which is independent of a change in the price level, would best be an example of:

• A) The interest-rate effect
• B) The real-balances effect
• C) A change in the degree of excess capacity
• D) A change in real value of consumer wealth

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Definitions:

Visual Cortex

The region in the occipital lobe of the brain responsible for processing information related to vision.

Broca's Area

A region in the frontal lobe of the dominant hemisphere of the brain associated with the production of speech.

Rods

Photoreceptor cells in the retina that are highly sensitive to light and enable vision in low-light conditions, but do not perceive color.

Cones

Photoreceptor cells in the retina of the eye responsive to bright light and capable of color vision.