Economists Use the Phrase "Business Cycle" When Referring to Fluctuations

question 161

Multiple Choice

Economists use the phrase "business cycle" when referring to fluctuations in

• A) the rate of real output and employment.
• B) interest rates.
• C) the consumer price index.
• D) the general level of prices.

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Definitions:

Income-producing Assets

Assets that generate revenue over time, such as rental properties, stocks, or bonds.

Banking Regulators

Agencies or bodies responsible for overseeing banks and ensuring the stability, safety, and compliance of the banking sector.

Federal Funds Market

A financial market that allows banks to borrow or lend excess reserves to one another, typically overnight, at an interest rate called the federal funds rate.

Discount Window

A monetary policy tool used by central banks, providing short-term loans to commercial banks to help them meet reserve requirements or alleviate liquidity shortages.