The Factor Leading to Business Cycles According to the Real

question 269

Multiple Choice

The factor leading to business cycles according to the real business cycle theory is changes in

• A) the growth rate of the quantity of money.
• B) technological change caused by changes in productivity.
• C) productivity caused by changes in technology.
• D) investment caused by changes in business confidence.

---

Definitions:

Lower Prices

A strategy or condition where the cost of goods or services is reduced to attract customers or gain a competitive edge in the market.

Stored-value Money

A type of electronic money that is stored on a card or a digital wallet, representing a claim on a predefined amount of currency.

Gift Cards

Prepaid stored-value money cards issued by a retailer or bank, used as an alternative to cash for purchases within a particular store or related businesses.

Electronic Checks

Electronic checks, or e-checks, are a form of digital payment where money is electronically withdrawn from the payer's checking account, transferred over the ACH network, and deposited into the payee's account.