If Business Fluctuations Are from Demand-Side Forces

question 33

Multiple Choice

If business fluctuations are from demand-side forces,

• A)monetary and fiscal policy will move inversely.
• B)interest rates and budget deficits will move inversely.
• C)unemployment and inflation will move inversely.
• D)unemployment and budget deficits will move inversely.

---

Definitions:

Interest Revenue

Interest Revenue is income earned from investments in various debt instruments, including savings accounts, bonds, and loans, where others pay interest to the entity holding those assets.

Long-Term Investments

Investments held by a company for more than one year with the intention of yielding financial returns, such as stocks, bonds, or real estate.

Marketable Stocks

Shares that are easily bought or sold in the market due to their high liquidity and the presence of numerous buyers and sellers.

Marketable Bonds

Bonds that can be easily sold in the financial markets because they are highly liquid and attractive to investors.