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Risk That Is Related to the Uncertainty About Interest Rate

question 115

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Risk that is related to the uncertainty about interest rate movements is called


Definitions:

Discretionary Expansionary

Refers to fiscal or monetary policy actions initiated by a government or central bank to stimulate economic growth.

National Saving

The total amount of savings generated within a country, equal to the sum of private and public savings, often used for investment.

Crowding Out

The phenomenon where increased government spending leads to a reduction in private sector investment or spending due to higher interest rates or competition for resources.

Discretionary Fiscal Policy

It involves government policy changes in taxation and spending designed to influence economic activity, typically to counteract inflation or deflation and stabilize the economy.

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