Which of the Following Statements Is Correct

question 81

Multiple Choice

Which of the following statements is correct?

• A)In the long run, output is determined by the amount of capital, labor, and technology; the interest rate adjusts to balance the supply and demand for money; the price level adjusts to balance the supply and demand for loanable funds.
• B)In the long run, output is determined by the amount of capital, labor, and technology; the interest rate adjusts to balance the supply and demand for loanable funds; the price level adjusts to balance the supply and demand for money.
• C)In the long run, output is determined by the amount of capital, labor, and technology; the interest rate adjusts to balance the supply and demand for loanable funds; the price level is stuck.
• D)In the long run, output responds to the aggregate demand for goods and services; the interest rate adjusts to balance the supply and demand for loanable funds; the price level adjusts to balance the supply and demand for money.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold, reflecting its perceived worth in the open market.

Common Shares

A type of equity security that represents ownership in a corporation, giving the holder voting rights and a share in the company's profits via dividends.

Authorized

Officially approved or sanctioned, often referring to a specified amount of capital stock a corporation is legally permitted to issue.

Issued

In finance, issued refers to the process of making securities available for sale to the public or the specific quantity of securities that have been made available.