Business Cycles Are Linked to the Interaction Between

question 91

Multiple Choice

Business cycles are linked to the interaction between:

• A)the foreign exchange rate and the balance of payments account.
• B)the aggregate demand and aggregate supply curves.
• C)the demand and supply curves for a particular good.
• D)the substitution and the wealth effect.
• E)the long-run aggregate supply curve and the aggregate resource curve.

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Definitions:

Amortization

The process of gradually paying off a debt over a period of time through planned, periodic payments of principal and interest.

Bond Discount

The difference between the face value of a bond and the price for which it is sold, when the bond is sold for less than its face value.

Operating Activities

Operating activities relate to the primary, day-to-day activities of a business such as selling products, manufacturing, and expenses related to administration.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.