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    Money Banking and Financial Markets
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    Exam 25: Transmission Mechanisms of Monetary Policy
  5. Question
    A Rise in Stock Prices ________ the Net Worth of Firms
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A Rise in Stock Prices ________ the Net Worth of Firms

Question 31

Question 31

Multiple Choice

A rise in stock prices ________ the net worth of firms and so leads to ________ investment spending because of the reduction in moral hazard.


A) raises;higher
B) raises;lower
C) reduces;higher
D) reduces;lower

Correct Answer:

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