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Classify the Following as a Financial Shock, a Spending Shock

Question 121

Essay

Classify the following as a financial shock, a spending shock, or a supply shock.
(a) Holding everything else equal, a cost-efficient robotic distribution method is adopted by many industries.
(b) Due to decreased profitability forecasts, businesses reduce investment.
(c) The U.S. dollar appreciates.
(d) The Federal Reserve intervenes in financial markets to lower the risk premium.

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