Which of the Following Is a Source of Macroeconomic Instability

question 35

Multiple Choice

Which of the following is a source of macroeconomic instability?

• A) commodity price shocks
• B) oil shocks
• C) exchange rate shocks
• D) debt shocks
• E) all of the above

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Definitions:

Additional Paid-in Capital

Additional paid-in capital is the amount of money shareholders have invested in the company above the par value of the shares, representing excess capital that is not classified as profit.

Shareholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities.

Balance Sheet

A financial statement that shows a company’s assets, liabilities, and shareholders' equity at a specific point in time.

Continuity Assumption

A fundamental accounting principle assuming that a business will continue to operate indefinitely, maintaining its financial and operational policies without the intention or necessity of liquidation.