In Monetarist Business Cycle Theory, the Factor Leading to a Business

question 104

Multiple Choice

In monetarist business cycle theory, the factor leading to a business cycle is represented by changes in

• A) consumer spending.
• B) investment spending.
• C) the growth rate of the quantity of money.
• D) net exports.

---

Definitions:

Entrepreneurship

The activity of setting up a business, taking on financial risks in the hope of profit.

Implicit Costs

The opportunity costs of resources already owned by the firm and used in business, for which no cash payment is made.

Price-Discriminating

A pricing strategy where a seller charges different prices for the same product or service to different customers, based on factors like buyer's age, location, or purchase history.

Elastic Demand

A situation in which the demand for a product is highly responsive to changes in its price.