The Business Cycle Is the

question 94

Multiple Choice

The business cycle is the

• A)relationship between unemployment and inflation.
• B)irregular fluctuations in economic activity.
• C)positive relationship between the quantity of money in an economy and inflation.
• D)predictable changes in economic activity due to changes in government spending and taxes.

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Definitions:

Inflation Rates

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Maturity Risk

The risk that arises from the uncertain future value of investments that have a fixed earnings rate and a fixed maturity date.

Inflation Adjustment

A modification made to financial statements or figures to account for the effects of inflation.

Inflation Rates

The rate at which the general level of prices for goods and services is rising, leading to a decrease in the purchasing power of money.