If Firms Were Faced with Greater Uncertainty Because of Concern

question 81

Multiple Choice

If firms were faced with greater uncertainty because of concern that oil prices might rise,they might decrease expenditures on capital.In response to this change,which of the following might someone who advocated "lean against the wind" policies might advocate?

• A)the money supply
• B)taxes
• C)government expenditures
• D)inflation

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Definitions:

Recall

The mental process of retrieving information from the past, often without the aid of explicit cues.

Events

Occurrences or happenings that are significant in some way to the environment or individuals.

Mood-congruent Memory

The tendency to recall experiences that are consistent with one's current mood.

State-dependent Memory

The phenomenon where information learned in a particular state of mind is more easily recalled when in that same state.