Which of the Following Is Most Likely to Close a Recessionary

question 116

Multiple Choice

Which of the following is most likely to close a recessionary gap in the economy?

• A)A decrease in the expenditure on infrastructure
• B)An increase in the income tax rate
• C)An increase in the rate of foreign exchange
• D)A decrease in money supply
• E)An increase in the compensation for government employees

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Definitions:

Compounded Quarterly

Describes the frequency with which interest is added to the principal balance of a loan or deposit four times a year, increasing the total amount of interest earned or paid.

Maturity Value

The amount payable to the investor at the end of a fixed-term investment, including both the principal and the interest.

Compounded Semi-Annually

This refers to the process of calculating interest on the initial principal and the accumulated interest over two periods within a year.

11%

11% typically refers to an interest or annual rate, indicating that 11 percent of the principal amount will be paid in interest over a year.