A Basic Feature of the Classical System of Self-Regulating Markets

question 154

Multiple Choice

A basic feature of the classical system of self-regulating markets was that

• A)overproduction and unemployment would cause prices and wage rates to increase.
• B)flexible wages and prices would eliminate unemployment and overproduction.
• C)overproduction would never occur.
• D)an increase in saving would cause an increase in the interest rate and a decrease in investment spending.
• E)rising unemployment caused wage rates to rise,which reduced the demand for labor.

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Definitions:

Exchange Difference

The difference resulting from translating a certain amount of one currency into another at different exchange rates.

Remeasurement

The process of adjusting the carrying value of a financial instrument or asset to reflect its current value or changes in market conditions.

Cash Settlement

A method of settling a transaction or financial instrument in cash rather than the physical delivery of the asset.

Bid Rate

The price at which a buyer is willing to purchase securities or other assets.