Credit Rationing and the Financial Accelerator Are Responsible,in Part,for

question 34

Multiple Choice

Credit rationing and the financial accelerator are responsible,in part,for

• A) the significant volatility of gross private investment.
• B) the significant volatility of real personal consumption.
• C) smoothing gross private investment during severe recessions.
• D) smoothing real personal consumption during expansions.

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Definitions:

Reference Group

A social group that an individual uses as a standard for evaluating their own behaviors, beliefs, or attitudes.

Instrumentality

In motivation theory, the perceived relationship between performance and outcomes.

Performance

The act of carrying out or accomplishing a task or function, often evaluated against pre-established criteria or objectives.

Effort

The amount of physical or mental energy put into a task or activity to achieve a desired outcome or result.