When an Economy Is in a Recession

question 34

Multiple Choice

When an economy is in a recession,

• A) strong demand for investment funds will push interest rates upward.
• B) strong demand for resources will push the prices of resources upward.
• C) the real interest rate will tend to rise.
• D) the unemployment rate will rise above its natural rate.

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Definitions:

Unpleasant Stimulus

A negative or harmful stimulus that causes discomfort or aversion, often used in psychology to study learning, memory, and behavior conditioning.

Desired Behavior

A specific pattern of action that an individual or group aims to achieve or exhibit.

Nature

The processes within an organism that guide that organism to develop according to its genetic code.

Nurture

The processes external to an organism that nourish it as it develops according to its genetic code or that cause it to swerve from its genetically programmed course. Environmental factors that influence development.