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:

Not-for-Profit Organizations

Organizations that operate for purposes other than making a profit, typically focusing on social, educational, charitable, or cultural objectives.

Institutional Buyers

Organizations or entities such as schools, hospitals, and governments that purchase goods or services in large quantities, often at negotiated prices.

Reseller Firm

A business that purchases products from manufacturers, wholesalers, or distributors and then sells them to the public or to other businesses.

Organizational Buying

The decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers.