ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Financial marketing volatility and disruption to industrial production
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Rapid devaluation of a currency
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Raise in the cost of products
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None of the above
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Detailed explanation-1: -The COVID-19 pandemic sent shock waves through the world economy and triggered the largest global economic crisis in more than a century. The crisis led to a dramatic increase in inequality within and across countries.
Detailed explanation-2: -Turbulence in global financial markets Stock markets have declined over 30%; implied volatilities of equities and oil have spiked to crisis levels; and credit spreads on non-investment grade debt have widened sharply as investors reduce risks (Figure 1).
Detailed explanation-3: -Sales have seen a sharp decline due to travel restrictions, social distancing, restrictions on sale of some commodities and customers resorting to budget cuts and putting projects on hold. Companies are struggling to recover fixed costs in the absence of revenue generation due to sharp drop in sales.
Detailed explanation-4: -Examples of Economic effect in a sentence Economic effect, including the number of jobs created and the income which will be generated by the wages and salaries of these jobs in relation to the amount of land required, and the amount of tax revenues potentially accruing to state and local government.