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The Economy Has Been Compared to a Supertanker on the Ocean

Question 7

Multiple Choice

The economy has been compared to a supertanker on the ocean to make the point that


A) the larger the economy,the less it is influenced by other economies (the weather) .
B) it takes time for a policy change to overcome the economy's momentum and change its direction (as in steering an immense ship) .
C) a random shock affects all parts of the economy in the same way (as all of a ship rises or falls together with the waves) .
D) the larger the economy,the worse it is for the rest of the world when it goes into a recession (there is enough oil in a supertanker for a spill to stretch across the ocean) .

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