According to an Old Saying, When Too Much Money Is

question 154

Multiple Choice

According to an old saying, when too much money is chasing too few goods, we have a(n)

• A)recessionary gap.
• B)inflationary gap.
• C)full employment.
• D)paradox of thrift.

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Definitions:

Worst-Case Scenario

The most severe or unfavorable outcome that may happen in a given situation, often used in planning and risk management.

Soft Rationing

An internal policy mechanism by which a company limits the amount of funding allocated to new or existing projects, without a shortage of available funds.

NPV Project

A project evaluated using the Net Present Value method, which calculates the present value of all cash flows associated with the project, minus the initial investment.

Straight-Line

A method of calculating depreciation of an asset which assumes the asset will lose an equal amount of value each year over its useful life.