Economic activity moves from a trough into a period of ________ until it reaches a ________ and then into a period of ________.
A. expansion; peak; recession
B. recession; peak; expansion
C. expansion; trough; recession.
D. recession; trough; expansion
Answer: A
You might also like to view...
In a store that sells souvenirs, suppose an agent receives a $1 commission for each unit sold, and the principal receives the residual profit. As a result
A) joint profit is maximized. B) the agent will sell until the principal's marginal cost equals $1. C) no agent would enter into such a contract. D) the agent wishes to sell as many units as he can.
A profit-maximizing monopoly will choose advertising expenditures so the ratio of advertising expenditures to total revenue is equal to the ratio of advertising elasticity to price elasticity (in absolute value)
Indicate whether the statement is true or false
Which of the following policies can be adopted by the Fed in order to stimulate an economy in the short run?
a. Increase the market interest rate b. Purchase U.S. government securities c. Increase the discount rate d. Increase the price of consumer goods e. Increase the required reserve ratio
Eliza wants to borrow $100 from Sandy. Sandy wants to make 4% real return on his money, so they both agree on a 4% interest rate paid next year. Eliza and Sandy did not anticipate any inflation, yet the actual inflation turned out to be -5% next year. In this case
A. Eliza will pay an 9% real interest rate. B. Eliza will pay a 4% nominal interest rate. C. Sandy is better off. D. all of the above.