Which of the Following Describes the Historical Record of the Business

question 93

Multiple Choice

Which of the following describes the historical record of the business cycle in the United States?

• A)The economy experiences an expansion about once every 20 years.
• B)Severe depressions have occurred frequently throughout history.
• C)Recessions have occurred every 25 years and are followed by two years of expansion.
• D)Periods of contraction seem to have gotten shorter over time.

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Definitions:

Carrying Value

The net amount at which an asset or liability is recognized in the balance sheet, taking into account factors like amortization, impairment, and depreciation.

Premium

An amount paid in addition to the standard or nominal rate, applicable in contexts such as insurance, bonds, or issues related to stock.

Annual Amortization

The portion of the total amortization expense allocated within a single fiscal year.

Interest Expense

The cost incurred by an entity for borrowed funds, typically reported on the income statement within the period the interest is incurred.