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Business, 05.05.2020 16:38 kaylaamberd

1) A financial crisis can lead to a recession because it can cause:

A. wealth and income to fall, reducing spending and ultimately reducing employment.

B. investment and income to fall, lowering saving and increasing the money supply.

C. wealth and saving to fall, lowering investment and increasing the money supply.

D. investment and saving to fall, increasing spending and ultimately reducing employment.

2) A major new invention can lead to an expansion if there are:

A. increases in saving, the money supply, and employment:

B. decreases in wealth and increases in consumption and unemployment.

C. increases in investment, consumption, output, and employment.

D. decreases in saving and increases in consumption and unemployment.

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Answers: 2

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1) A financial crisis can lead to a recession because it can cause:

A. wealth and incom...
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