If strong fiscal policy stimulus is used to combat a recessionary gap, what will happen?
A. A rapid movement toward lower unemployment and higher inflation
B. A rapid movement toward lower unemployment and lower inflation
C. A slow movement toward lower unemployment and higher inflation
D. A slow movement toward lower unemployment and lower inflation.
Answer: A
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A decline in housing prices can help to push the economy into a recessionary gap
Indicate whether the statement is true or false
Jason works in finance at an MNE. Part of his job is to invest large sums of money in various markets. His latest transaction was investing $10,000 in British pounds for 120 days, then taking the British pounds and investing them in euros for 90 days, and then converting it all back to U.S. dollars. Jason is most likely participating in ________.
A) interest arbitrage B) speculation C) cryptocurrency D) options
What is true of the slope of the aggregate expenditure line when factors of investment, government spending, and net exports are taken into account?
a. It is always 90 degrees. b. It is always horizontal. c. It is always positive. d. It is always negative.
A closed shop is one in which
A. some members belong to the union while others do not. B. a union is prohibited. C. the union is a co-manager of the day-to-day operations of the firm. D. belonging to a union is a condition of employment.