If Leakages Are Less Than Injections,equilibrium Output Will Be

question 94

Multiple Choice

If leakages are less than injections,equilibrium output will be

• A)Less than full-employment output,and a recessionary gap will occur.
• B)More than full-employment output,and a recessionary gap will occur.
• C)Less than full-employment output,and an inflationary gap will occur.
• D)More than full-employment output,and an inflationary gap will occur.

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Definitions:

Zero-Coupon

Bonds or debt securities that are issued at a discount and do not pay periodic interest payments, instead offering a lump sum at maturity.

U.S. GAAP

United States Generally Accepted Accounting Principles, which are a set of rules and guidelines that companies follow when preparing financial statements in the U.S.

Convertible Debt

A type of bond or loan that can be converted into a predetermined amount of the company's equity at certain times during its life, usually at the discretion of the debt holder.

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time, usually expressed as an annual percentage of the principal.