A Firm Is Said to Be Countercyclical If Its Returns

question 72

Multiple Choice

A firm is said to be countercyclical if its returns:

• A) continue to decrease, year after year.
• B) continue to increase, year after year.
• C) are better when most firms do poorly.
• D) are negative in real terms.

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Definitions:

Basalt

A fine-grained, dark-colored mafic igneous rock, with or without vesicles and phenocrysts of pyroxene, olivine, or feldspar.

Dark Lava Rock

Often basalt, this is a type of volcanic rock that is rich in iron and magnesium, giving it a dark coloration.

Continental Crust

The thick part of the Earth's crust that forms the continents and continental shelves, consisting mainly of granitic rocks.

Oceanic Crust

The thin, dense layer of the Earth's crust that underlies the ocean basins, composed primarily of basaltic rock.