Real Business Cycle Theory States That the Most Important Cause

question 16

Multiple Choice

Real business cycle theory states that the most important cause of business cycles is ________.

• A) shocks to the money supply
• B) interest rate shocks
• C) Bank of Canada policy decisions
• D) shocks to tastes and technology

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Definitions:

Rotates

To turn or revolve around an axis or a center.

Facial Nerve

The seventh cranial nerve responsible for controlling most of the muscles of facial expression and conveying taste sensations from the anterior two-thirds of the tongue.

Extrinsic Eye Muscles

A group of six muscles that control the movements of the eye and are responsible for holding the eyes in the orbits.

Abducens Nerve

The sixth cranial nerve, responsible for controlling the lateral rectus muscle of the eye, which abducts the eyeball (moves it outward).