The Keynesian View of the World Is That the

question 78

Multiple Choice

The Keynesian view of the world is that the

• A)self-correcting mechanism is unreliable.
• B)benefits of fighting unemployment are high and the costs are low.
• C)short-run Phillips curve is relatively flat.
• D)All of the above are correct.

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available to fund day-to-day operations.

Current Ratio

A financial metric assessing a firm's capability to settle its current obligations using its current assets.

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its current liabilities with its quick assets (cash, marketable securities, and accounts receivable) without relying on inventory sales.

Current Ratio

This ratio evaluates a corporation's potential to meet its immediate financial obligations, by dividing the total of current assets by the total of current liabilities.