Which of the Following Best Explains Why the U

question 25

Multiple Choice

Which of the following best explains why the U.S.experienced a Great Moderation while Canada did not?

• A) Canadian luck was worse than the U.S.'s.
• B) Financial development was stronger in the U.S.
• C) Monetary policies differed significantly between the two countries.
• D) Canadian luck was better than the U.S.'s.
• E) Financial development was stronger in Canada.

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Definitions:

Comparative Balance Sheet

A financial statement that presents a company's financial position at different times, side by side, to allow for performance comparison.

Cash Dividends

Payments made by a company from its earnings to its shareholders in the form of cash.

Operating Activities

Comprises the primary activities of a business that relate to providing goods and services, generating revenue, and paying expenses.

Comparative Balance Sheet

A financial statement that presents a company's financial position at different points in time side-by-side to assess changes in assets, liabilities, and equity.