As a Result of Flash Crashes, the SEC Is Trying

question 52

Multiple Choice

As a result of flash crashes, the SEC is trying circuit breakers that will halt trading for 5 minutes if large stocks' prices change by more than ________ in a 5-minute period.

• A) 10%
• B) 20%
• C) 30%
• D) 40%

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Definitions:

Unemployment

The condition of being capable and willing to work, but unable to find employment.

Money Supply

The complete aggregate of monetary assets in an economy at a certain moment.

Natural Rate of Unemployment

The level of unemployment consistent with a stable rate of inflation, determined by the structure and dynamics of the labor market.

Phillips Curve

An economic theory suggesting an inverse relationship between the level of unemployment and the rate of inflation within an economy.