Which of the Following Statements Is True About Causes of Business

question 21

Multiple Choice

Which of the following statements is true about causes of business cycle fluctuations?

• A)Economists all agree that supply shocks are the cause of most business cycle fluctuations.
• B)Economists all agree that productivity shocks are the cause of most business cycle changes.
• C)Economists all agree that monetary changes are primarily responsible for business cycle fluctuations.
• D)There are a wide range of theories as to the underlying causes of business cycle movements.

Calculate the present value of a future sum of money given an annual interest rate and timeframe.

Analyze investment options to choose the one with the greatest financial benefit.

Apply the concept of present value to quantify the worth of future payments or receipts in today's dollars.

Understand the relationship between interest rates, time periods, and the future value of investments.

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Definitions:

Overweight Investments

An investment strategy where a portfolio holds a higher percentage of a particular security or sector than the benchmark against which it is compared.

American Depository Receipts

Securities that represent shares in foreign public companies and are traded on U.S. stock exchanges, allowing investors to invest in overseas stocks more easily.

World Equity Benchmark Shares

Exchange-traded funds that aim to provide investment results that, before fees and expenses, correspond to the price and yield performance of specific international equity indexes.