Assume There Are Only Three Possible States of Nature for the Economy

question 57

Multiple Choice

Assume there are only three possible states of nature for the economy in the future: boom,normal,and recession.If there is a 25% chance of a recession and a 30% chance of a boom,then what is the probability of a normal economy in the future?

• A) 45%
• B) 30%
• C) 25%
• D) 100%

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Definitions:

Isometric Exercise

Exercise performed by contracting muscles against an immovable object.

Muscle Endurance

The ability of a muscle or group of muscles to sustain repeated contractions or to continue applying force against a fixed object for an extended period.

Cardiovascular Fitness

The ability of the heart, lungs, and blood vessels to supply oxygen to the muscles during sustained physical activity, indicative of overall heart health.

Lung Capacity

The maximum amount of air the lungs can hold, vital for respiration and overall health.