In a Business Cycle Recession, Which of the Following Occurs

question 41

Multiple Choice

In a business cycle recession, which of the following occurs?

• A) Investment demand increases and the demand for loanable funds curve shifts rightward.
• B) Investment demand decreases and the demand for loanable funds curve shifts leftward.
• C) The quantity of investment demanded increases and there is a movement down along the demand for loanable funds curve but no shift in the curve.
• D) The quantity of investment demanded decreases increases and there is a movement up along the demand for loanable funds curve but no shift in the curve.
• E) The quantity of investment demanded decreases and there is a rightward shift of the demand for loanable funds curve.

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Definitions:

Stock Options

Financial incentives given to employees, granting them the right to buy company shares at a set price after a certain period.

Executive Base Pay

The core salary paid to an executive, not including bonuses, incentives, and other forms of compensation.

Options Granted

Refers to the provision of stock options to employees as a form of compensation, giving them the right to purchase company stock at a future date at a predetermined price.

Strategic Compensation

A method of designing and implementing compensation packages that aim to align employee rewards with business objectives.