Which of the following macroeconomic variables is procyclical and leads the business cycle?
A) Business fixed investment
B) Residential investment
C) Nominal interest rates
D) Unemployment
B
You might also like to view...
Which of the following statements about inflation targeting is true?
a. Inflation targeting allows the central bank to achieve multiple goals like low unemployment and economic growth. b. Inflation targeting has not been adopted by the Fed. c. A central bank that adopts inflation targeting is intrinsically dependent on fiscal policy. d. Inflation targeting decreases the perceived uncertainty derived from the central bank's course of action. e. Inflation targeting increases the uncertainty associated with the central bank's course of action.
Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and GDP Price Index in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period rises and GDP Price Index rises. b. The quantity of real loanable funds per time period falls and GDP Price Index falls. c. The quantity of real loanable funds per time period rises and GDP Price Index falls. d. The quantity of real loanable funds per time period and GDP Price Index remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Planned investment is the:
A. amount that firms decide to allocate to inventory accumulation. B. spending households engage in based on forecasted budget. C. investment that a firm decides upon as a result of temporary market changes. D. amount that firms decide to allocate to new capital resources and inventory accumulation.
Capital goods are counted the same as consumer goods in the national product accounts.
Answer the following statement true (T) or false (F)