If European Economies Experience a Period of Sustained Recession and the United

question 16

Multiple Choice

If European economies experience a period of sustained recession and the United States does not, what will happen in the United States?

• A)an increase in aggregate supply 
• B)a decrease in aggregate supply 
• C)a decrease in aggregate demand 
• D)an increase in aggregate demand

Understand the concept and process of constructing zero-investment portfolios for arbitrage.

Differentiate between the CAPM and APT in terms of assumptions and applications.

Understand the concept of culture in the context of values, ideas, and attitudes shared among members of a group.

Recognize the legal implications of business practices and the distinction between ethical and legal behaviors.

---

Definitions:

Businesspeople

Individuals engaged in commercial, industrial, or professional activities, often with the aim of generating profits.

Age of Majority

The legally defined age at which an individual is considered an adult and is responsible for his or her actions and decisions.

Law of Infants

Legal provisions and protections specifically related to the rights and well-being of minors.

Torts

Legal wrongs committed against a person or property, excluding breach of contract, for which the law provides a remedy.