ECONOMICS
AGGREGATE DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a cushion for businesses during a recession
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the capital investment needed to promote long-term growth
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a source of household wealth
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a break on consumption (paradox of thrift)
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Detailed explanation-1: -Where to put money during a recession. Savings accounts, money market accounts, and CDs are all ways to keep your money at your local bank. Alternatively, you could invest in the stock market with a broker.
Detailed explanation-2: -They may reduce hiring, impose a hiring freeze and suspend pay raises, resorting to layoffs to cut costs if all else fails. Companies may also cut capital spending and marketing, curtail research and development, and stop new product rollouts.
Detailed explanation-3: -Having savings goals is never a bad idea, even during a recession. So if you’ve got a Christmas sinking fund in full force-keep it. If you’re smack-dab in the middle of saving your emergency fund-stick with it.
Detailed explanation-4: -Cut or reduce unnecessary costs. Protect cash flow. Nurture your existing customer base. Support the employees you’re retaining. Look for operational efficiencies. Seek available assistance. Bring it back to what you’re really good at.