Which One of the Following Could Cause a Recessionary Gap

question 151

Multiple Choice

Which one of the following could cause a recessionary gap?

• A)Interest rates are too low.
• B)Consumers spend more than they earn.
• C)Price levels are too high.
• D)Businesses spend more than they save.

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Definitions:

Concept of Conservation

A cognitive ability in child development whereby the child learns that quantity or amount does not change despite a change in the form or arrangement of objects.

Object Permanence

The understanding that objects continue to exist even when they cannot be observed or heard, a concept developed during early childhood.

Abstract Reasoning

The ability to analyze information, detect patterns and relationships, and solve problems on a complex, abstract level.

Basic Trust

A fundamental sense of confidence in the reliability and predictability of the world, often developed in early childhood.