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Consider the Market for ABC Company's Stock

Question 115

Multiple Choice

Consider the market for ABC Company's stock. What shouldhappen in this market after an announcement that the companyis having financial difficulties?


A) The demand for the stock would shift to the left.(True Answer ) Correct
B) The demand for the stock would shift to the right.
C) The supply of the stock would shift to the left.
D) The supply of the stock would shift to the right.

Correct Answer:

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