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

question 65

Multiple Choice

The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock. Figure 30.2 According to Figure 30.2, what sort of change in the market environment would increase the supply of stocks from S to S' and decrease the demand from D to D'?

• A)A perceived increase in the firms' expected future profits
• B)A new perception that the economy is about to enter a period of expansion
• C)News revealing that stocks prices will increase in the future
• D)News that the economy is likely go into a recession soon
• E)A perceived improvement in the firms' performance compared to the last year

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Definitions:

Paranoia

A psychological disorder marked by false beliefs of being persecuted, unnecessary feelings of jealousy, or an inflated sense of self-importance, usually developed into a systematic framework.

Schizophrenogenic Mother

A now discredited theory suggesting that a cold and rejecting mother could cause schizophrenia in her child.

Frieda Fromm-Reichmann

A psychoanalyst known for her groundbreaking work in the treatment of schizophrenia and her concept of "the schizophrenogenic mother."

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.