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Q: What happens if the money supply stock shrinks?
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What happens when you sell a stock?

You earn money, i think.


What happens to the PPF when there is an increase in resources?

An increase in resources, such as a growth in the labor supply or in the capital stock, shifts the frontier outward.


Why stocks exchange increase or decrease daily?

Because when people buy stock, that means they are paying a company a sum to have the right to own a part of that company. When this happens the value of the company goes up. However if people do not like a company they will sell the stock they own and get money back for it. When this happens the company now holds less money and its stock goes down. This happens with thousands of listings everyday on the stock exchanges.


What happens to prices when the supply is greater than demand?

The price often come down as suppliers try to shift slow selling stock.


What are synonyms for fund?

Account. reserve, stock, supply, store, collection, pool money, capital, cash, finance, means, savings, resources, assets


What are function of stock?

Stock gives the reliability to supply a customer with a minimum lead time.


Who determines a company's share price?

Actually nobody. The price of a company's share is determined by the demand and supply theory and not by any individual. During an IPO, the price is determined by the lead underwriters to the IPO issue. But once the stock gets listed, the demand and supply drives the price of the stock. If a stock has heavy demand and limited supply, the price of the stock goes up. Similarly if a stock has little demand and heavy supply, the price goes down.


What determines the price of a stock?

the law of supply and demand


What is in effect when investors purchase stock?

supply and demand


A part ownership of a company due to money invested is called?

the answer is stock


If the Federal Reserve increases the reserve requirement and velocity remains stable What will happen to nominal GDP and why?

A significant increase in reserve requirements will reduce the lending of member banks resulting in a relatively smaller supply of M2 money. Money can bought and sold repeatedly by each stock speculator throughout the day. Just look at the volume netted and cleared by stock speculators on a daily basis. Therefore velocity has no obvious unambiguous meaning outside of something like nominal GDP divided by money supply. Therefore by this definition a decrease in money supply must be countered with a decrease in GDP to keep velocity stable.


What is a sentence for stock?

The stock market has fallen down.I have a little stock of groceries.