Which of the Following Is an Example of a Long-Run

question 323

Multiple Choice

Which of the following is an example of a long-run adjustment?

• A)Your university offers Saturday morning classes next fall.
• B)Ford Motor Company lays off 2,000 assembly line workers.
• C)A soybean farmer turns on the irrigation system after a month long dry spell.
• D)Walmart builds another Supercenter.

---

Definitions:

Annuities

Financial products that pay out a fixed stream of payments to an individual, primarily used as an income stream for retirees.

Discount Rate

The interest rate charged by central banks on loans they give to commercial banks.

Present Values

The present equivalent of a future money sum or cash flow series, calculated using a particular rate of return.

Student Loans

Financial borrowings aimed at financing higher education expenses, subject to repayment with interest.