Assume That Political Business Cycles Do Not Exist

question 39

Multiple Choice

Assume that political business cycles do not exist.Given this assumption,we would expect,all else fixed,the output growth to be highest in which period?

• A)just prior to an election
• B)just after an election
• C)in the first year of an administration
• D)in the second year of an administration
• E) none of the above

---

Definitions:

Journal Entry

A single record that reflects the debit and credit effects of a financial transaction in the accounting system.

Coupon Rate

The yearly interest yield on a bond, shown as a percent of the bond's nominal value.

Effective-Interest Method

An accounting method to amortize the discount or premium on bonds payable or receivable over the bond's life, reflecting a constant rate of interest.

Market Rate

The current price or interest rate at which a good, service, or financial asset can be bought or sold in a competitive market.