Figure 9-4 ​

question 200

Multiple Choice

Figure 9-4
​
-In Figure 9-4, which expenditure level will result in a recessionary gap?

• A)1
• B)2
• C)3
• D)There will be no deflationary gap.

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Definitions:

Cash-Out Situation

A scenario where an investor or business needs to liquidate assets or securities to cover liabilities or other cash needs.

Collection Period

The amount of time it takes for a business to receive payments owed by its customers.

Cash Disbursements

Financial payments made by a business, including expenses, creditor payments, and inventory purchases.

Seasonal Merchandise

Products that are particularly popular or in demand during specific seasons or periods of the year.