A Change in Economic Output Is ________ If the Value

question 230

Multiple Choice

A change in economic output is ________ if the value of the resulting gains exceeds the value of the resulting losses.

• A) potentially efficient
• B) always efficient
• C) always inefficient
• D) irrelevant

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Definitions:

Amortized

Amortized refers to gradually reducing the principle amount owed on a debt over time through a fixed repayment schedule.

Compounded Monthly

Interest on an investment or loan calculated each month and added to the principal, affecting the amount of future interest.

Refinanced

The action of replacing an existing debt with a new one, often with more favorable terms or a lower interest rate.

Total Debt Service Ratio

A debt measure that financial institutions use to evaluate a borrower's ability to manage monthly payments and repay debts.