If the Economy Is Currently in Equilibrium at a Level

question 298

Multiple Choice

If the economy is currently in equilibrium at a level of GDP that is below potential GDP,which of the following would move the economy back to potential GDP?

• A)an increase in wealth
• B)an increase in interest rates
• C)a decrease in business confidence
• D)an increase in the value of the dollar relative to other currencies

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Definitions:

Short-Form Merger

A merger between a subsidiary corporation and a parent corporation that owns at least 90 percent of the outstanding shares of each class of stock issued by the subsidiary corporation.

Acquisition

The act of obtaining control of another company or asset, typically through purchase or merger.

Corporation

A corporation is a legal entity that is separate and distinct from its owners, formed by a group of people or shareholders, and recognized as having rights and responsibilities similar to those of an individual.

Statutes

Laws or acts enacted by a legislative body to regulate, authorize, sanction, grant, declare, or restrict.