Business Cycles Are

question 41

Multiple Choice

Business cycles are

• A) predictable, with a recession following a trough.
• B) irregular, with some having two recessions and no expansion.
• C) unpredictable, but always have two phases and two turning points.
• D) unpredictable, and donʹt always have two phases and two turning points.

---

Definitions:

Rate of Default

The probability that a borrower will be unable to make required payments on their debt obligation.

Credit Period

The duration during which a buyer can purchase goods or services on credit before payment is due to the seller, often expressed in days.

Percentage Cost

The cost expressed as a percentage of the purchase price or other value, often used to analyze and compare costs or expenses.

Default Rate

This is the rate at which borrowers fail to make payments on their debts, often expressed as a percentage.