The Economic Theory That Emphasizes How Shocks to Technology Can

question 58

Multiple Choice

The economic theory that emphasizes how shocks to technology can cause fluctuations in economic activity is known as the:

• A) technological advancement theory.
• B) nominal business cycle theory.
• C) economic fluctuations theory.
• D) real business cycle theory.

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Definitions:

Going Public

The process by which a privately held company offers shares to the public in a new stock issuance, making it a publicly traded and owned entity.

Private Placements

A method of raising capital through the sale of securities to a relatively small number of select investors as opposed to a public offering.

Venture Capital

Financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.

Mezzanine Capital

A hybrid form of financing that is often used to fund the expansion of existing companies, combining elements of debt and equity financing.