(Consider This) the 2007-2009 Recession Began with Reductions in Investment

question 5

Multiple Choice

(Consider This) The 2007-2009 recession began with reductions in investment and consumption spending, precipitated by a financial crisis. This explanation for the recession is consistent with

• A) the monetarist view of macroeconomic instability.
• B) the rational expectations view of macroeconomic instability.
• C) the mainstream view of macroeconomic instability.
• D) none of these views of macroeconomic instability.

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Definitions:

Express Authority

The power granted to an agent or representative explicitly stated by the principal in a written or oral form.

Actual Authority

The express and implied powers given by a principal to an agent for carrying out specific transactions.

Principal

The primary party involved in a transaction or contract, or the amount of money originally invested or loaned, before interest.

Agent

An individual or entity authorized to act on behalf of another (the principal) in legal or business matters.