Which One of the Following Could Cause a Recessionary Gap

question 151

Multiple Choice

Which one of the following could cause a recessionary gap?

• A)Interest rates are too low.
• B)Consumers spend more than they earn.
• C)Price levels are too high.
• D)Businesses spend more than they save.

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Definitions:

Potential Energy

The energy stored within an object due to its position, condition, or composition, which has the potential to be converted into kinetic energy.

Chemical Bonds

Strong interactions between atoms or ions that hold molecules together, including covalent, ionic, and metallic bonds.

Reactants

Substances initially present in a chemical reaction that are consumed during the reaction to make products.

Products

Substances that are formed as a result of a chemical reaction.