23 Jul WHICH OF THE FOLLOWING IF TRUE WOULD STRENGTHEN LARRYS ARGUMENT?
1. The Country Murell is in the Midst of a Recession. Firms have cut back on invest Show more Only one answer! 1. The Country Murell is in the Midst of a Recession. Firms have cut back on investment and consumer spending has fallen. Larry Summersa market analyst is discussing the economys grim prospects with his journalist friend Michael Philips. Larry says that the recent open market purchases by the central bank will have a positive impact on consumer demand. Michael doess not agree. He thinks that monetary policy will not be very effective and that policy makers should instead focus on fiscal policy measures to boost the economy. Which of the following if true would strengthen Larrys argument? A. Soome commentators believe that the mechanization of industry in Murell has adversly affected employment and worsened the impact of the crisis. B. The stock market in Murell is not very mature. C. The data on average weekly hours worked in the manufacturing sector shows a decline of 5% in the last three months. D. The Consumer Confidence index compiled by a leading investment bank in Murell is now at its highest level since the recession began. E. Afew months prior to the crisis the financial services regulatory authority had tightened the rules on loans to individuals with poor credit scores. Show less
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