According to Real Business Cycle Theorists,an Increase in Total Factor

question 5

Multiple Choice

According to real business cycle theorists,an increase in total factor productivity could lead to an increase in the nominal money supply due to

• A) the cyclical behavior of tax collections and attempts by the Federal Reserve to stabilize real output.
• B) the Federal Reserve's attempts to stabilize real output and the price level.
• C) the Federal Reserve's attempts to stabilize the price level and banking sector expansion of deposit money.
• D) banking sector expansion of deposit money and the cyclical behavior of tax collections.

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Definitions:

Interest Revenue

Income earned by an entity from lending money or making investments that bear interest.

Reportable Segments

These are components of a business where separate financial information is available and is reviewed regularly by the operating decision maker for the purpose of resource allocation and performance assessment.

Operating Profit

Earnings before interest and taxes (EBIT), an indicator of a company's profitability from its core operations excluding financing costs and taxes.

Segment Assets

These are the specific assets that are attributed to a company's business segment, helping to analyze performance by division.