Which of the Following Is the Most Likely Cause of a Recession

question 15

Multiple Choice

Which of the following is the most likely cause of a recession according to the real business cycle model?

• A)an unanticipated change in the money supply.
• B)an increase in taxation,government spending,and regulation.
• C)a fall in expected profits.
• D)an anticipated change in the money supply.
• E)none of the above.

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Definitions:

Real Assets

Assets that have intrinsic value due to their substance and physical properties, such as real estate, commodities, or natural resources.

Current Account

A component of a country's balance of payments that measures the trade of goods and services, net earnings on investments, and transfer payments.

Goods Exports

The act of sending domestically produced goods to another country for sale or trade.

Current Account

A country's transactions with the rest of the world, including goods, services, income, and current transfers.