Which of the following is a source of macroeconomic instability?
A) commodity price shocks
B) oil shocks
C) exchange rate shocks
D) debt shocks
E) all of the above

Question

Quizplus · Accepted Answer

All of the listed factors can lead to macroeconomic instability. Commodity price shocks can affect the prices of goods and services, which can contribute to inflation or deflation. Oil shocks can also affect inflation and can harm the overall economy. Exchange rate shocks can create uncertainties and volatility in the international trade market. Debt shocks can cause a recession by limiting credit availability and causing businesses and consumers to decrease spending. All of these factors can lead to macroeconomic instability.

Which of the Following Is a Source of Macroeconomic Instability