The Basic RBC Model Predicts ________ Movements in the Price

question 129

Multiple Choice

The basic RBC model predicts ________ movements in the price level,which in fact occur ________ in the U.S.economy.

• A)countercyclical,only occasionally
• B)countercyclical,most of the time
• C)procyclical,only occasionally
• D)procyclical,most of the time

---

Definitions:

Shelf Registration

A regulatory process that allows a company to register a new issue of securities without having to sell the entire issue at once.

Securities

Financial instruments representing some type of financial value, such as stocks, bonds, or options.

Knowledgeable Investors

Individuals or entities that possess an understanding and experience in financial and business matters, making them capable of evaluating investment risks and merits.