Suppose That the E

question 36

Multiple Choice

Suppose that the E.U.economy goes into an expansion.Canadian real GDP _______ and Canadian unemployment _______ in the short run.

• A)increases; decreases
• B)decreases; increases
• C)decreases; decreases
• D)increases; increases
• E)does not change; does not change

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Definitions:

Defensive Strategy

A defensive strategy in investing involves choosing stocks or assets that are less susceptible to economic downturns or market fluctuations, often focusing on necessity goods or services.

Stock-Index Futures

Futures contracts based on stock indices, which allow investors to speculate on the future value of an index.

Sell

The action of transferring ownership of a security or asset to a buyer for an agreed price.

Long Position

The purchase of a security such as a stock or commodity with the expectation that the asset will increase in value.