Which of the Following Is True

question 6

Multiple Choice

Which of the following is true?

• A)When increased government purchases or expansionary monetary policy does give the economy a boost, no one knows precisely how long it will take to do so.
• B)Given the difficulties of timing stabilization policy, a contractionary monetary policy intended to reduce the severity of a recession may instead add inflationary pressures to an economy that is already overheating.
• C)If velocity changes but moves in a fairly predictable pattern, the connection between the money supply and GDP is still unpredictable.
• D)When the economy is operating at levels significantly lower than the full-employment output, input prices are flexible.
• E)Government estimates of the real GDP and the value of the multiplier are always correct.

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Definitions:

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects money owed from its customers over a period.

Average Collection Period

The average amount of time that it takes for a business to receive payments owed by its clients in terms of receivables.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, indicating the efficiency of inventory management.

Inventory Turnover

Inventory Turnover is a measure of how many times a company's inventory is sold and replaced over a period.