Evidence Points Out That Since the Mid-1950's Just About Every

question 13

Multiple Choice

Evidence points out that since the mid-1950's just about every recession was preceded by rising interest rates. This suggests that the recessions were:

• A) caused in part by the actions of the Federal Reserve.
• B) the result of changes in consumer confidence.
• C) due to increases in oil prices and other production costs.
• D) caused by simultaneous shifts in aggregate demand and aggregate supply.

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Definitions:

Defensive Driving

Practice of using driving strategies that minimize risks and potential for accidents by anticipating dangerous situations.

Interest Rate

is the cost of borrowing money, expressed as a percentage of the principal, that lenders charge borrowers or the rate earned on deposits.

Expected Returns

Expected returns are the anticipated profit or loss from an investment, reflecting the potential financial gains or risks based on historical data and market trends.

Investment Demanded

Investment demanded refers to the total amount of spending by businesses and individuals on capital goods like machinery, buildings, and technology, to increase future productivity.