Which of These Economic Variables Is Procyclical

question 7

Multiple Choice

Which of these economic variables is procyclical?

• A)consumer spending
• B)stock prices
• C)the government bond spread
• D)all of the above
• E)none of the above

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Definitions:

Human Nature

The inherent characteristics, including ways of thinking, feeling, and acting, that all humans are said to possess naturally.

Founding

The action of establishing something important, such as a nation, organization, or institution.

Federalism

A political system in which power is divided between a central authority and constituent political units, such as states or provinces.

Great Compromise

An agreement made during the Constitutional Convention of 1787 that in part established a two-house legislature, combining elements of both proportional and equal representation.