FP Unit 5 5.02

Front

The period of time during the business cycle when production and employment increase is called a/an:

Back

expansion

Front

One factor that contributed to financial globalization was the shift of many developed countries from:

Back

fixed exchange rates to floating exchange rates.

Front

One factor that has stimulated financial globalization is the increase in: domestic competition

Back

domestic competition

Front

What do bond yields typically do during an economic expansion?

Back

increase

Front

When the Consumer Price Index (CPI) increases sharply, stock prices usually:

Back

fall

Front

Falling interest rates typically cause:

Back

stock prices to increase

Front

Ups and downs in the level of economic activity over a period of time are called a/an:

Back

business cycle

Front

A decline in the financial markets can be caused by: lower inflation, higher employment, higher uemployment, growth in major industry sectors

Back

higher uemployment

Front

In calculating GDP, economists try to avoid double counting because it would:

Back

inflate the value of GDP

Front

This year’s nominal GDP is higher than last year’s even though production stayed the same. The higher GDP figure is the result of:

Back

inflation