Recessions Tend to Be ______ by ______ in the Rate

question 12

Multiple Choice

Recessions tend to be ______ by ______ in the rate of inflation.

• A) followed; an increase
• B) followed; a decline
• C) preceded; a decline
• D) preceded immediately; a stabilization

---

Definitions:

Discount Rate

The interest rate charged by central banks on loans they give to commercial banks.

Present Values

The present equivalent of a future money sum or cash flow series, calculated using a particular rate of return.

Student Loans

Financial borrowings aimed at financing higher education expenses, subject to repayment with interest.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, usually expressed as a percentage of the principal.