Refer to the Graph Below

question 97

Multiple Choice

Refer to the graph below. The movement from point 1 to point 2 is stimulated by a disequilibrium in which there is domestic ________ and ________.

• A) overemployment; trade surplus
• B) unemployment; trade surplus
• C) overemployment; trade deficit
• D) unemployment; trade deficit
• E) inflation; unemployment

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Definitions:

Public Securities

Financial instruments, such as stocks or bonds, that are traded openly in the public markets.

Industrial Corporation

A type of corporation that specializes in the manufacturing and production of goods in an industrial sector.

Scienter

The knowledge of the wrongfulness of an act or the intent to commit an act that is forbidden by law.

SEC Rule 10b-5

SEC Rule 10b-5 is a regulation enacted by the Securities and Exchange Commission to prevent fraud in securities transactions, including misrepresentation or omission of crucial information.