If Recessions in the United States Were to Increase in Frequency

question 30

Multiple Choice

If recessions in the United States were to increase in frequency, length, and severity, the likely result would be a(an)

• A)shift to the right in the supply curve for loanable funds.
• B)shift to the right in the demand curve for bonds.
• C)rise in the equilibrium interest rate.
• D)increase in the liquidity of corporate bonds.

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Definitions:

Five-Year Renewal

Typically refers to the option or requirement to renew a contract, license, or agreement for an additional five-year period.

Mechanical Engineer

A professional who applies principles of physics and materials science for the design, analysis, manufacturing, and maintenance of mechanical systems.

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