Suppose There Is News of Rising Unemployment

question 69

Multiple Choice

Suppose there is news of rising unemployment.Which scenario is most likely?

• A) Firms invest more in automation;the demand for loanable funds rises;interest rates rise;borrowing drops,which makes the anticipated bad times a reality.
• B) Households save in anticipation of bad times;the supply of loanable funds rises;interest rates fall;firms take advantage of lower interest rates and make more investments,which stimulates the economy.
• C) Householders spend more in anticipation that they won't have the money if they lose their job;the supply of loanable funds falls;interest rates rise;firms cut back on borrowing and spending,which brings about more unemployment.
• D) Householders borrow more to prepare for unemployment;the demand for loanable funds rises;interest rates rise;business cuts back on investment,which slows the economy.

Understand the differences between iterative and recursive methods in terms of performance and resource usage.

Understand the last-in/first-out (LIFO) principle of stack data structures.

Understand the use of stacks in managing recursion as opposed to queues.

Identify the considerations necessary for formulating recursive solutions.

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Definitions:

Standard Deviation

A statistic that measures the dispersion of a dataset relative to its mean and is calculated as the square root of the variance.

Stock A

A generic term used to represent a share in the ownership of a company, typically entitling the shareholder to a portion of the profits.

Mean-Variance Efficient Portfolio

A portfolio constructed to have the highest possible expected return for a given level of risk.

Covariances

A measure of how two variables move in relation to each other, indicating the degree to which they vary together.