Which of the Following Will Causes Prices of Financial Instruments

question 64

Multiple Choice

Which of the following will causes prices of financial instruments to change?

• A)current earnings
• B)expected future earnings
• C)Both a and b are correct.
• D)None of the above is correct.

Comprehend how self-correction mechanisms work in adjusting an economy towards its potential output.

Differentiate between passive and active approaches to economic policy.

Identify the effects of policy stances (active and passive) on real GDP and price levels in the short and long run.

Recognize the role of wages (money and real) in the self-correction process.

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Definitions:

Reagan Administration

The period of United States government from 1981 to 1989 when Ronald Reagan served as the President.

Fiscal Policy

Government policies regarding taxation and spending to influence the economy.

Taxes

Required fiscal contributions or alternative kinds of dues enforced on taxpayers by governmental bodies aimed at raising funds for government activities and diverse public expenses.

Unemployment Benefits

Financial payments made by the government to individuals who are unemployed and meet certain eligibility requirements.