As a Global Recession Began in Late 2008,the Governments of All

question 33

Multiple Choice

As a global recession began in late 2008,the governments of all major economies searched for policy responses to dampen the effects of the recession.In general,governments were aiming to

• A)shift the AD curve to the left by decreasing tax rates.
• B)increase potential GDP.
• C)shift the AS curve to the right through large increases in government spending.
• D)shift the AD curve to the right through large increases in government spending.
• E)shift the AS curve to the left by increasing wage rates.

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Definitions:

Risk Averse

A description of an investor's or institution's preference to avoid risk, opting instead for the most stable and predictable outcomes.

Investment Horizon

The total length of time that an investor expects to hold a portfolio or a specific investment before selling it.

Liquidation Date

The predetermined date on which an investment or venture is terminated, and all assets are liquidated.

Defined Contribution Pension Plan

A retirement plan where both employer and employee contribute to an individual account for the employee, with benefits depending on investment performance.