Which of the Following Is an Adverse Supply Shock

question 109

Multiple Choice

Which of the following is an adverse supply shock?

• A) a decrease in the money supply
• B) a tax cut
• C) a worldwide drought
• D) decreased government spending

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Definitions:

R&D Expenditures

Money spent on research and development activities to innovate and improve products or processes.

Expected Return

The anticipated profit or loss from an investment, considering both the probability and the impact of all possible outcomes.

Cost of Funds

The interest rate that financial institutions and other lenders charge each other for the use of money, as in loans or deposits.

Income

The financial gain received by an individual or entity, typically measured on a per year basis, from work, investments, or other sources.