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27 October, 07:20

A sharp rise in the real value of stock prices, which is independent of a change in the price level, would best be an example of: A. The interest-rate effect B. The real-balances effect C. A change in the degree of excess capacity D. A change in real value of consumer wealth

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  1. 27 October, 07:33
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    D. A change in the real value of consumer wealth.

    Explanation:

    A change in the real value of consumer wealth basically changes the quality of life hence real value of stock prices.
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