Suppose Stock Prices Rise

question 49

Multiple Choice

Suppose stock prices rise.To offset the resulting change in output the Federal Reserve could

• A)increase the money supply.This increase would also move the price level closer to its value before the rise in stock prices.
• B)increase the money supply.However,this increase would move the price level farther from its value before the rise in stock prices.
• C)decrease the money supply.This decrease would also move the price level closer to its value before the rise in stock prices.
• D)decrease the money supply.However,this decrease would move the price level farther from its value before the rise in stock prices.

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Definitions:

Social Networking Sites

Websites that provide a virtual community for people to socialize about a particular subject or any topic in general.

Channel Conflict

Conflict between two or more members of a supply chain, such as a manufacturer, wholesaler, or retailer.

Extranets

Private networks that use internet technology to securely share part of a business's information or operations with suppliers, vendors, partners, customers, or other businesses.

Mobile Devices

Portable electronic devices, such as smartphones and tablets, that have computing capabilities and can access the internet.