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.

---

Definitions:

Type A Personality

A personality type characterized by high levels of competitiveness, self-imposed stress, time urgency, and aggressiveness.

Catharsis

In psychology, the idea that “releasing” aggressive energy (through action or fantasy) relieves aggressive urges.

Stress Reactions

The physical, emotional, and behavioral responses generated by perceived threats or challenges to an individual's wellbeing.

Immune Deficiencies

Conditions where the immune system's ability to fight infectious disease and cancer is compromised or entirely absent.