Rapid Changes in Economic Conditions That Have Large Effects on the Productivity

question 92

Multiple Choice

Rapid changes in economic conditions that have large effects on the productivity of capital and labor are called:

• A) business cycles.
• B) recessions.
• C) shocks.
• D) transmission mechanisms.

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Definitions:

Lbs

An abbreviation for pounds, a unit of weight commonly used in the United States and the British imperial system; not directly a financial term unless related to commodities trading.

Coffee Futures

Financial contracts obligating the buyer to purchase coffee, and the seller to sell coffee, at a predetermined future date and price.

Pounds

A unit of mass commonly used in the British imperial and United States customary systems, equivalent to 0.453592 kilograms.

Marking to Market

The practice of updating the value of a financial instrument to reflect its current market value.