Which of the Following Restates the Basic Business Cycle Fact

question 60

Multiple Choice

Which of the following restates the basic business cycle fact that money is procyclical?

• A)Changes in the behaviour of the money stock has been closely associated with changes in economic activity,nominal income,and prices.
• B)Monetary changes have often had an independent origin;they have not been a reflection of changes in economic activity.
• C)The interrelation between monetary and economic changes have been highly stable.
• D)Both A and C are correct.

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Definitions:

Stock Price

The cost of purchasing a share of a company's stock, representing the market's value of a share of the company's equity.

Days Sales Outstanding

A measure of how long it takes a company to collect payment after a sale has been made, indicating the efficiency of the company's credit and collection policies.

Sales

The activities involved in selling products or services, or the total amount of goods or services sold.

Times-Interest-Earned Ratio

A fiscal indicator that evaluates a firm's capacity to satisfy its debt commitments utilizing its present income.