How Was the 2007-2009 Recession Different from the Previous Two

question 150

Multiple Choice

How was the 2007-2009 recession different from the previous two recessions?

• A) In the 2007-2009 recession, employment growth did not resume when output began to rise.
• B) There were much higher levels of unemployment during the 2007-2009 recession.
• C) In the 2007-2009 recession, employment had not reached its prior peak, even after three years.
• D) The recovery after the 2007-2009 recession was weak.

---

Definitions:

Capital Budgeting

The process of evaluating and selecting long-term investments that are consistent with the firm's goal of maximizing owner wealth.

Foreign Currency

Currency used in a country other than one's own, involved in international transactions or investment opportunities.

Home Currency

The currency in which a country conducts its principal economic activities and in which domestic financial statements are reported.

Exchange Rate Risk

The possibility of losing value in international financial transactions due to fluctuations in the currency exchange rates.