"If We Come to a Company's Rescue This Time,they'll Take

question 8

Multiple Choice

"If we come to a company's rescue this time,they'll take more risks and we'll have to come to their rescue next time,too." The economist who said this most likely

• A) believes that the AS curve is upward-sloping.
• B) prefers monetary policy to fiscal policy when it comes to stabilizing the economy.
• C) is against bailouts.
• D) prefers increases in government spending to tax cuts when it comes to stimulating the economy from the demand side.
• E) none of the above

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Definitions:

Objectivity

The practice of being unbiased, not influenced by personal feelings or opinions in considering and representing facts.

Competitive Advantages

Qualities that allow a company to perform better than its competitors, such as superior products, lower costs, or better branding.

Cost Advantages

Economic benefits that an organization gains due to lower production costs, often leading to competitive pricing.