Which of the Following Is NOT an Example of a Short-Term

question 12

Multiple Choice

Which of the following is NOT an example of a short-term macroeconomic shock?

• A) a drought
• B) planned investment expenditures
• C) increased military spending
• D) a change in the tax code
• E) political unrest

Understand the concept of future value and how it is affected by interest rates.

Comprehend the concept of present value and how it can be determined for future cash flows.

Understand the impact of changes in the equilibrium interest rate on the economy, including output and investment allocation.

Identify and calculate the real interest rate from given nominal rates and inflation rates.

---

Definitions:

Normally Distributed

Describes a distribution that is symmetrical, bell-shaped, and characterized by data equally spread around the mean, implying many measurement observations fall close to the average.

Mean

The average value in a set of numbers calculated by dividing the sum of all values by the number of values.

Z-scores

Standardized scores that indicate the number of standard deviations an element is from the mean.

Shaded Area

Often used in graphs and charts to represent a particular section, range, or subset of data visually.