Question: Which action might we logically expect to result from rising stock prices? a.firms spend less on investment b.increased household wealth leading to increased consumption spending

Which action might we logically expect to result from rising stock prices?

a.firms spend less on investment

b.increased household wealth leading to increased consumption spending

c.people will save more and consume less

d.firms sell fewer shares of new stock

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

Which action might we logically expect to result from rising stock prices? a.increased household wealth leading to increased consumption spending b.firms sell fewer shares of new stock c.people will...

Q:

Which action might we logically expect to result from rising stock prices? a.people will save more and consume less b.firms spend less on investment c.increased household wealth leading to increased...

Q:

Why is it important for us to understand how the global system of financial institutions and markets works? ros57395_ch01.qxd 12/21/04 2:45 PM Page 1 Part 1 The Global Financial System in Perspective...

Q:

Exercise. The short-run aggregate supply curve may shift to the left if: a inflationary expectations increase. b productivity increases. c government spending increases. d personal income taxes...

Q:

The pandemic has caused the massive growth of public debt in many countries. With reference to the latest supply bill based on the research attached below devlop 4 research questions LO INTRODUCTION:...

Q:

The pandemic has caused the massive growth of public debt in many countries. With reference to the latest supply bill based on the research attached below devolpe four research questions LO...

Q:

Part 1: Recent Economic and Financial Developments Monetary Policy Report submitted to the Congress on February 7, 2020, pursuant to section 2B of the Federal Reserve Act Domestic Developments The...

Q:

What 3 questions come to mind as you read the article Explain how you came up with the question and why it interests you The Financial and Economic Crisis of 2008: A Systemic Crisis of Neoliberal...

Q:

I have asked three questions with my textbook chapter in which they come from. it would be greatly appreciated if you could help me answer these three questions. Thanks so much. :) 1. What is the...

Q:

3 COLLEGE ALGEBRA - TRIGONOMETRY Business and Finance (MAT115) This course will start with a review of basic algebra (factoring, solving linear equations, and equalities, etc.) and proceed to a study...

Q:

How would smart cards be safer than magnetic swipe cards? Why?

Q:

Indigo, Inc., a personal service corporation, records the following income and losses for the current tax year. a. Calculate Indigos taxable income for its current tax year. b. Assume that instead of...

Q:

If both Firm A and Firm B produce products at the same cost and Firm A has a competitive advantage over Firm B due to higher perceived consumer benefits, the value is based on: Cost differentiation...

Q:

foothing is known about the probabilities of the chance outcomes, what is the recommended decision using the optimistic, conservative, and minimax regret approaches? (5 marks) Suppose that management...

Q:

2. In this chapter, the reader should reflect on the following concepts: emo-tional information, concrete information, local information, the reference object, consensus information, conflict...

Q:

11. Give two examples of each of the following heuristic assessment mechanisms. a) We use the information that is currently accessible. b) We assume an initial anchor point (value). c) We compare to...

Q:

4. Give an example of how the consistency principle can be used to influence others.