Business Cycles Tend to Impact Nations Other Than the Nation

question 1

Multiple Choice

Business cycles tend to impact nations other than the nation in which they are occurring because of ________________.

• A)foreign repercussions
• B)absorption
• C)the income elasticity of imports
• D)the foreign multiplier

---

Definitions:

Perfect Timing

Perfect timing refers to the ideal moment to buy or sell a security in order to achieve the highest possible gains based on market conditions.

Market Portfolio

A theoretical portfolio of investments that contains all available assets in the market, weighted by market capitalization.

Call Option

The right to buy an asset at a specified exercise price on or before a specified expiration date.

Nonsystematic Variance

The portion of an investment's variance that is attributable to factors specific to its issuer and can be eliminated through diversification.