During the Recession Phase of the Business Cycle,business Firms Become

question 87

Multiple Choice

During the recession phase of the business cycle,business firms become pessimistic about their future earning capacity as do banks.Nominal interest rates fall during recessions.Investment lending could be expected to

• A)rise if the change in future earnings is thought to be greater than the change in interest payments.
• B)stay the same.
• C)fall.
• D)fall if the change in future earnings is thought to be greater than the change in interest payments.

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Definitions:

Renal Papillae

The apexes of the renal pyramids of the kidney which project into the minor calyx, playing a crucial role in the flow of urine.

Calyces

The plural of calyx; structures in the kidneys that collect urine before it passes into the urinary bladder.

Urea

A nitrogenous waste product formed in the liver, the final product of protein metabolism, and excreted in the urine.

Countercurrent Multiplier

A system, particularly in the kidney, that enables the production of a concentrated urine by exploiting the flow of fluids in opposite directions.