What would likely have the most severe immediate effect on an economy?
A. A significant drop in exports
B. The Fed's infusing reserves into the economy
C. A failure of the financial sector
D. An aggregate demand shock
Answer: C
You might also like to view...
How does the owner of a corporation relate to the business?
A) The owners of the business have no separate legal distinction from the business. B) The owners of the business have a separate legal distinction from the business. C) The personal assets are part of the corporation's assets. D) None of these describe the legal relationship of corporate owners to the business.
In order to be successful in a market economy, entrepreneurs must
A) combine resources in a manner that increases their value. B) produce anything that consumers value, regardless of cost. C) use only personal financial capital so they can avoid interest payments on borrowed funds. D) produce a good that consumers value less than the resources used to produce it.