If a Potential Investment Is Referred to as an Alligator

question 2

Multiple Choice

If a potential investment is referred to as an alligator or loss, the investor knows he can expect

• A) water problems.
• B) a negative cash flow.
• C) no profit.
• D) a break even investment

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Definitions:

Fiscal Policy

Government adjustments in spending levels and tax rates to monitor and influence a nation's economy.

Lag

The time delay between the occurrence of one event and the occurrence of another event that is directly related to the first.

Monetary Policy

Actions by a central bank to influence the amount of money and credit in the economy to achieve macroeconomic objectives like controlling inflation.

Aggregate Demand

The total demand for all goods and services in an economy at a given overall price level and in a given time period.