According to monetary theories of the business cycle, fluctuations are a. indepe

Question

According to monetary theories of the business cycle, fluctuations are
a. independent of the banking system
b. more prevalent in countries with modern banking systems
c. more prevalent in agricultural countries
d. less prevalent in those countries with modern banking systems


Monetary theorists maintain that to eliminate the business cycle, it is necessary to eliminate
a. money
b. currency
c. bank creation of checkable deposits
d. bank reserves


During the contraction phase of the business cycle,
a. prices fall relative to costs, reducing profit margins
b. costs fall relative to prices, reducing profit margins
c. prices fall relative to costs, increasing profit margins
d. costs fall relative to prices, increasing profit margins


The period when the level of business activity has dropped as far as it is going to drop in a particular business cycle is known as the trough.
True
False

Stabilizing measures by the federal government eliminate the business cycle.
True
False

Through 2005, the most serious U.S. trough since the Great Depression was the one that occurred in
a. 1991
b. 2001
c. 1974

Explanation / Answer

b c a true false d

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