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:

Mammillary Bodies

Paired structures in the brain involved in memory function, part of the limbic system.

Subarachnoid Space

The area between the arachnoid mater and pia mater around the brain and spinal cord, filled with cerebrospinal fluid.

Dural Venous Sinus

Channels located within the dura mater layer of the meninges that drain venous blood from the brain and transport it into the internal jugular vein.

Subdural Space

The area between the dura mater and the arachnoid mater of the brain, potentially a site for hematomas following head injury.