If an Economy Has a Volatile In?ation Rate

question 68

Multiple Choice

If an economy has a volatile in?ation rate:

• A) uncertainty will increase making investment decisions di?cult.
• B) net exports will rise since goods will be imported from other countries.
• C) the business cycle will be relatively stable.
• D) the government will pursue policies to shift aggregate supply to the left.

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Definitions:

Intelligence Quotient

A measure of a person's reasoning ability compared to the statistical norm or average for their age, calculated using standardized tests.

Chronological Age

The exact age of an individual measured in years from the date of birth to the current date, usually used as a measure in developmental studies.

Mental Age

A measure of an individual's mental attainment as compared to the average mental ability of individuals of a specific chronological age.

Stanford-Binet Intelligence Scale

A standardized test designed to measure human intelligence and cognitive abilities in five factors: fluid reasoning, knowledge, quantitative reasoning, visual-spatial processing, and working memory.