In the early part of an economic expansion, inventory-sales ratios are most likely to:
A. Increase because sales are unexpectedly low.
B. Increase because businesses plan for expansion.
C. Decrease because of unexpected increases in sales.
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The contraction phase of the business cycle is least likely accompanied by decreasing:
A. unemployment.
B. Inflation pressure.
C. Economic output.
An increase in the policy rate will most likely lead to an increase in:
A. Business investment in fixed assets.
B. Consumer spending on durable goods.
C. The foreign exchange value of the domestic currency.
A country that targets a stable exchange rate with another countrys currency least likely:
Accepts the inflation rate of the other country.
B. Will sell its currency if its foreign exchange value rises.
C. Must also match the money supply growth rate of the other country.
Sales in the retail sector have been sluggish, and consumer confidence has recently declined, indicating fewer planned purchases. In response, the president sends an expansionary government spending p
A. Discretionary Recognition
B. Automatic Action
C. Discretionary Action