The Effect of the Harsh Budget Cuts Required by the European

question 95

Multiple Choice

The effect of the harsh budget cuts required by the European countries who made emergency loans to Greece in 2011 was:

• A)the speedy return of the Greek economy to full employment.
• B)an inflationary gap in the Greek economy.
• C)that the Greek economy fell into a liquidity trap.
• D)that the Greek economy became even more depressed and was unable to repay its debts in full.

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Definitions:

Classified Balance Sheet

A balance sheet that contains standard classifications or sections.

Personal Cash

Refers to the liquid assets that an individual holds for the purpose of immediate or near-term spending or investment.

Accounts Receivable

Receivables from customers against goods or services supplied by a business, pending payment.

Capital Statement

A financial statement that illustrates changes in a company's equity over a certain period, including investments, withdrawals, and net income or loss.