Real Business Cycle Theory Suggests That Changes in _____ Are

question 76

Multiple Choice

Real business cycle theory suggests that changes in _____ are the primary cause of business cycles.

• A) aggregate demand
• B) the growth of factor productivity
• C) fiscal policy
• D) monetary policy

---

Definitions:

Disbursements

Payments made by a business, often related to operational expenses or loan repayments.

Optimal Average Cash Balance

The ideal level of cash a company seeks to maintain to minimize the costs associated with holding too much or too little cash.

Weekly Interest Rate

Interest calculated and applied on a weekly basis, often referred to in terms of loans or savings.

BAT Model

Behaviorally Adjusted Time (BAT) Model refers to a calculation method designed to account for the inefficiencies human behavior introduces into the financial markets.