AnswersCHS EconomicsInvesting and Financial Markets

Investing and Financial Markets — Unit test Answers

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21
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When individuals are looking for jobs but are unable to find work, they are said to be .

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22
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How do consumers’ feelings about the economy help contribute to growth?

P
Positive consumer attitudes influence spending habits.
P
Positive consumer attitudes increase job prospects.
P
Positive consumer attitudes inspire increased production.
P
Positive consumer attitudes can end a depression.
23

Does a depression always follow a recession?

Y
Yes, the trough is always considered a depression.
N
No, a depression is indicated when the recession is exceptionally long.
Y
Yes, for recovery to occur, the trough must be reached.
N
No, the economy could decline quickly and bypass recession.
24

Which of the following best describes the circular flow model?

A
The model represents the movement of money throughout the economy.
B
The model represents the interactions within sectors.
C
The model represents the flow of goods and services between sectors.
D
The model represents the changing relationships between actors.
25

How do bank loans help the nation’s economy?

A
They ensure consumer spending and confidence.
B
They ensure the success of new businesses.
C
They allow businesses to expand and improve.
D
They allow consumers to quickly pay off debts.

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Investing and Financial Markets — Unit test…