The Following fiGure Shows the Business Cycle for an Economy

question 3

Multiple Choice

The following figure shows the business cycle for an economy over time. Refer to the figure to answer the question. An economic boom in the country is represented by _____.

• A) point A
• B) point B
• C) point C
• D) point D

---

Definitions:

Compounding

A method in which an investment's worth grows over time as the returns, including both capital gains and interest, accumulate interest.

Compound Interest

The practice of charging interest on the principle amount along with the interest that has been piled up from past periods, relevant to both lending and saving scenarios.

Future Value

The value of a current asset or amount of money at a specified time in the future, accounting for interest or capital gains.

FV

A financial term representing the future value of an investment, accounting for factors like interest rates and time.