The Real Business Cycle (RBC) Theory Assets That the Impact

question 187

Multiple Choice

The real business cycle (RBC) theory assets that the impact on real GDP of technological change is

• A) always positive.
• B) usually positive but occasionally negative.
• C) always negative.
• D) nonexistent.

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Definitions:

Acceleration Clause

A contract provision that allows a lender to require a borrower to repay all of an outstanding loan if certain agreed upon conditions are not met.

Market Value

The price at which an asset would trade in a competitive auction setting, reflecting what a willing buyer would pay a willing seller.

Mortgage

A loan in which property or real estate is used as collateral. The borrower agrees to pay back the loan, with interest, over a set period of time.

Co-Sureties

Multiple parties who join together to provide surety or a guarantee for the performance or obligations of another.