The Timeline of Production Indicates That

question 125

Multiple Choice

The timeline of production indicates that

• A) supply creates its own investment.
• B) first production occurs,then profit represents a residual,and then this residual is saved.
• C) firms first invest (which is borrowing),then they produce,and then the revenue they receive is used to pay resource suppliers and lenders.
• D) firms first save (which is lending),then they produce,and then the revenue they receive is used to lend even more.
• E) real interest rates rise faster than nominal interest rates because production occurs before income is received by the firm.

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Definitions:

Controlling

Exercising authority or influence over a situation or individual to dictate or direct outcomes.

Negative Reinforcement

A process in behavior modification where the removal of an unfavorable outcome or stimulus strengthens the likelihood of a desired behavior.

Buzzer

An electronic device that produces a loud or vibrating sound as a signal or alarm.

Seat Belt

A safety device in vehicles designed to secure the occupant against harmful movement that may result during a collision or a sudden stop.