Stable Money and Prices Are a Key Source of Economic

question 83

Multiple Choice

Stable money and prices are a key source of economic growth because

• A) they allow activist policymakers to fine tune the economy.
• B) uncertainty and instability in prices will attract investors and business decision makers.
• C) price instability increases capital formation.
• D) price stability reduces the risks that accompany investment and other long-term commitments.

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Definitions:

Merger

The combination of two or more companies into one, where one survives and the others cease to exist.

Creditors

Individuals or institutions that are owed money by debtors or borrowers.

Acquiring Assets

The process of obtaining assets for a company to increase its value or to support the expansion of operations.

Controlling Stock Interest

Ownership of a sufficient amount of shares in a company to dictate policy and manage company affairs.