​Sources of Risk Include

question 10

Multiple Choice

​Sources of risk include
1) fluctuations in stock prices
2) inflation
3) possibility of bankruptcy

• A)​1 and 2
• B)​1 and 3
• C)​2 and 3
• D)​all three

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Definitions:

Spending Multiplier

An economic concept indicating the ratio of change in aggregate income to an initial change in spending, illustrating how initial spending leads to increased total spending.

Aggregate Demand Curve

A graph demonstrating the amount of products and services desired by households, companies, the government, and foreign buyers at various price points.

Expansionary Monetary Policy

A policy by central banks to increase the money supply and lower interest rates, aiming to boost economic activity and reduce unemployment.

Interest Rate

An interest rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.