Policies to Reduce the Likelihood of Financial Crises Might Include

question 14

Multiple Choice

Policies to reduce the likelihood of financial crises might include ________.

• A)enlarging government budget deficits
• B)reducing imbalances in global trade and capital flows
• C)keeping the inflation rate near or below zero
• D)more aggressive use of stabilization policy
• E)all of the above

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Definitions:

FIFO Inventory Method

An accounting method for valuing inventory that assumes the first items purchased are the first ones sold.

Ending Inventory

The total value of all inventory that a company has in stock at the end of an accounting period.

Decreasing Unit Costs

A situation in which costs per unit of output fall as the volume of production increases, often due to economies of scale.

Higher Amount

A term that refers to a value that is greater when compared with another quantity or measure.