What Actions Should Be Taken Under the Internal-External Imbalance of Recession

question 50

Multiple Choice

What actions should be taken under the internal-external imbalance of recession and surplus?

• A)Expansionary fiscal policy to correct for recession,and expansionary monetary policy to correct for surplus
• B)Expansionary fiscal policy to correct for surplus,and contractionary monetary policy to correct for recession
• C)Contractionary fiscal policy to correct for recession,and expansionary monetary policy to correct for surplus
• D)Contractionary fiscal policy to correct for excess surplus,and contractionary monetary policy to correct for recession

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Definitions:

Average Inventory

Average inventory is a calculation that estimates the value or quantity of inventory a company holds over a specific period, helpful for assessing inventory management efficiency.

Carrying Cost

Carrying cost refers to the total cost of holding inventory, which includes warehousing, handling, depreciation, opportunity costs, and insurance.

Carrying Costs

Costs that rise with increases in the level of investment in current assets.

Average Inventory

The mean value of inventory over a certain time period, used for inventory management and planning.