The Keynesian Model Provided an Explanation for

question 31

Multiple Choice

The Keynesian model provided an explanation for

• A) the prolonged unemployment of the 1930s.
• B) the double-digit inflation rates of the 1970s.
• C) the high unemployment rates of the 1970s.
• D) the high inflation rates of the 1930s.

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Definitions:

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specified price within a specific time period.

Expiration

The date on which a derivative contract such as an option or futures contract becomes void and the right to exercise it no longer exists.

Arbitrage Opportunity

A situation where a trader can profit from differences in price of the same asset in different markets without taking on any risk.

American Put Option

A type of put option that can be exercised at any time before its expiration, allowing the holder to sell the underlying asset at a specified price.