If There Is a Political Business Cycle and the Federal

question 34

Multiple Choice

If there is a political business cycle and the Federal Reserve supports the incumbent,then we should expect that prior to elections

• A)interest rates and output would rise.
• B)interest rates would rise and output would fall.
• C)interest rates would fall and output would rise.
• D)interest rates and output would fall.

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Definitions:

Nonverbal Cues

Body language and other physical behaviors used to convey messages or emotions without the use of words.

Nuclear Family

A family unit consisting of two parents and their children living together as a single household.

Adopted Children

Children who have been legally taken into a family different from their birth family, to be raised as a member of the adoptive family.

Skip Generation Family

A family structure where grandparents are the primary caregivers of grandchildren, with the parents being absent or only minimally involved.