Which of the Following Statements About Business Cycles in the U.S

question 200

Multiple Choice

Which of the following statements about business cycles in the U.S. is most accurate?

• A) Business cycles occur precisely every 5 years.
• B) Long-term business cycles have only two phases-boom and bust.
• C) Seasonal business cycles occur within a year.
• D) Business cycles are based on theories.

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Definitions:

Interest Rates

The fee, shown as a percentage of the principal amount, that a lender imposes on a borrower for the use of assets.

T-bill Rate

The yield on U.S. Treasury bills, a benchmark for short-term interest rates in the United States.

Futures Price

The agreed-upon price for the future exchange of an asset; a financial contract specifying the price at which an asset, often a physical commodity or a financial instrument, will be bought or sold at a future date.

Spot Price

The current market price at which a particular asset, such as a commodity, security, or currency, can immediately be bought or sold.