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If you're behind a web filter, please make sure that the domains *.kastatic.org and *.kasandbox.org are unblocked. If you're seeing this message, it means we're having trouble loading external resources on our website. If you're behind a web filter, please make sure that the domains *.kastatic.org and *.kasandbox.org are unblocked. 55. When the total amount the government spendsequals tax revenues in any given year, which ofthe following must remain constant?57. Which of the following statements about inflationis true? Get answer to your question and much more 56. How does the automatic adjustment mechanismmove the economy to potential real grossdomestic product (GDP) in the long run whencurrent real GDP is above potential GDP? Get answer to your question and much more Unauthorized copying or reuse ofany part of this page is illegal.-12- Recommended textbook solutions
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Essentials of Investments9th EditionAlan J. Marcus, Alex Kane, Zvi Bodie 689 solutions Which of the following typically occurs during an expansionary phase of the business cycle?A business cycle has four main phases – expansion, peak, contraction and trough. In an expansion, households demand more goods and services, businesses hire more workers, and wages and prices typically increase. This phase ends with a peak in economic activity.
Which of the following will most likely result from deflation?Deflation is associated with an increase in interest rates, which will cause an increase in the real value of debt. As a result, consumers are likely to defer their spending.
Which of the following will happen when interest rates increase in an economy?When interest rates are rising, both businesses and consumers will cut back on spending. This will cause earnings to fall and stock prices to drop. On the other hand, when interest rates have fallen significantly, consumers and businesses will increase spending, causing stock prices to rise.
Which of the following will most likely result in a lower interest rate in a nation?Which of the following will most likely result in lower real interest rate in a nation? The citizens of the nation increase their savings for retirement.
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Which of the following is likely to result in an inflow of financial capital to country z?
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