It Is Possible That the World Is Reaching a Point

question 75

True/False

It is possible that the world is reaching a point where the old tendency for political units to increase in size while decreasing in number is being canceled out by the tendency for such units to fragment into a greater number of smaller ones.

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Definitions:

Liquidity

The ease with which an asset can be converted into cash without significantly affecting its price, reflecting the ability of a company or individual to meet immediate and short-term obligations.

Precautionary Motive

The desire to hold cash or other liquid assets to meet unexpected needs and financial emergencies.

Financial Slack

The availability of excess funds or resources in a company that allows for flexibility in operations, strategic investments, or weathering financial uncertainties without immediate financial stress.

Keynes

Refers to John Maynard Keynes, a British economist whose ideas fundamentally changed the theory and practice of macroeconomics and economic policies of governments.