Monetarists Would Argue That the Severe Recession of 2007-2009 Was

question 132

Multiple Choice

Monetarists would argue that the severe recession of 2007-2009 was primarily caused by:

• A) Adverse aggregate-supply shocks causing tremendous unemployment
• B) Wide swings in investment expenditures driving erratic fluctuations in aggregate demand
• C) Excessive money supply creating a bubble in some sectors of the economy
• D) Too much deregulation of the financial sector in previous years

Acquire knowledge on how current liabilities and assets adjustments are treated in the indirect method.

Distinguish between operating, investing, and financing activities in the context of cash flows.

Understand the definition and purpose of the statement of cash flows.

Differentiate between operating, investing, and financing activities.

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Definitions:

Net Realizable Value

The estimated selling price of goods, minus the costs of their sale or completion, used in determining the value of inventory on hand.

LIFO

An inventory valuation method standing for Last-In, First-Out, where the most recently acquired items are assumed to be sold or used first.

FIFO

FIFO (First In, First Out) is an inventory valuation method where the oldest inventory items are recorded as sold first.

Fair Value

The estimated market value of an asset or liability, based on current market prices.