Which View of the Macroeconomy Suggests That the Speed of Adjustment

question 38

Multiple Choice

Which view of the macroeconomy suggests that the speed of adjustment for self-correction would be very quick?

• A) monetarism
• B) mainstream economics
• C) supply-side economics
• D) rational expectations theory

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Definitions:

Cash Increase

A rise in the amount of cash and cash equivalents held by a business.

Accounts Payable

Liabilities of a business representing money owed to creditors for goods and services purchased on credit.

Source of Cash

Any activity or operation that brings money into a business, contributing to its cash flow.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated by dividing current assets by current liabilities.