Which of the Following Have to Be in Equilibrium for the Economy

question 47

Multiple Choice

Which of the following have to be in equilibrium for the economy to be in equilibrium?

• A) the money market only
• B) the goods market only
• C) the output and asset markets
• D) the savings and investment markets
• E) the goods and output markets

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Definitions:

Debt Securities

Financial tools that signify an investor lending money to a borrower, commonly consisting of bonds, notes, and bills.

Speculative Reasons

Motivations based on speculation where actions are taken with the expectation of future financial gains or losses.

Equity Method Investments

Investments in which the investor has significant influence over, but not full control or ownership of, another company, requiring recognition of its share of the investee's profits or losses.

Marketable Stock Securities

Financial instruments that represent ownership in companies or rights to ownership, easily bought and sold in public markets.