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Take a Test- https//www.mathoxl.com/Student/PlayerTest.aspx?testld 173158434&centerwin-yes; Econ 3001 Wintersession 2017/2018 Internet Explorer Quiz: Quiz Chapter 20 This Question: 1 pt 150132 (13 complete) This Qui Qu When the stlock market rises, Investment is Increasing \" Is this statement true, false, or uncertain? Explain your answer A. True The buying and selling of stocks wil increase income, so new production must occur O B. False. The buying and selling of stocks represents transfers of existing assets, and new production does not occur C. False When the stock market rises less borrowing is likely to occur, thus decreasing investment O D. Uncertain Investment spending is most ikaly infuenced by emotional waves of optimism or pessimism and not changes in the stock market.

Solution

B is correct

Buying and selling of stocks do not add directly to the investment as these are transfer of assets only and do not create any new production.