If the Probability of Losing Your Job Remains ________, a Recession

question 145

Multiple Choice

If the probability of losing your job remains ________, a recession would be a good time to purchase a home because the Bank of Canada usually ________ interest rates during this time.

• A)low; lowers
• B)low; raises
• C)high; lowers
• D)high; raises
• E)low; does not change

---

Definitions:

Income

Income refers to the financial earnings someone acquires regularly either from performing work or making investments.

Optimal Consumption Bundle

A combination of goods and services that maximizes a consumer's satisfaction or utility, given their income and the prices of goods and services.

Normal Good

A type of good for which demand increases as consumers' income increases, and vice versa.

Inferior Good

A category of product whose demand falls when the income levels of buyers rise, in opposition to normal goods.