Because of Their ________ Liquidity,________ U

question 34

Multiple Choice

Because of their ________ liquidity,________ U.S. government securities are called secondary reserves.

• A)low;short-term
• B)low;long-term
• C)high;short-term
• D)high;long-term

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Definitions:

Economy

The organized system of human activity involved in the production, consumption, and distribution of goods and services in a particular geographic or political area.

Economic Contraction

A decline in national output as measured by GDP, often marked by a decrease in spending, investment, and general economic activity.

Aggregate Supply

The total supply of goods and services that firms in an economy are willing and able to sell at a given overall price level in a given time period.

Aggregate Demand

The total demand for all goods and services within a particular market or economy at a given overall price level and in a given period.