The Effects of a Decline in the Value of Financial

question 13

Multiple Choice

The effects of a decline in the value of financial assets,such as stocks,on consumption and the economy might be offset by

• A)increasing government spending.
• B)decreasing the money supply.
• C)increasing taxes.
• D)undertaking no policy action.

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Definitions:

Intrigued

Having one's interest or curiosity greatly aroused.

Salivate

The secretion of saliva in the mouth by the salivary glands, often in response to the sight, smell, or taste of food.

Elicits

To draw out or bring forth a response or answer through various means.

UCS

Unconditioned Stimulus; in classical conditioning, it is something that naturally and automatically triggers a response without any learning needed.