Which of the Following Likely Occurs When Households and Firms

question 62

Multiple Choice

Which of the following likely occurs when households and firms are pessimistic?

• A)Increased spending.
• B)Increased aggregate demand.
• C)Real GDP rises.
• D)The unemployment rate increases.

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Definitions:

Competing Business

A company that operates in the same industry and market segment as another, offering similar products or services.

Director

An individual appointed to serve on the board of an organization, responsible for overseeing and guiding the organization's policies, finances, and operations.

Promissory Note

A financial instrument that contains a written promise by one party to pay another a definite sum of money either on demand or at a future specific date.

Fiduciary Duty

A duty required by law for one entity to prioritize the welfare of another while managing their finances, assets, or private data when given such responsibility.