Which of the Following Statements About the Business Cycle Is

question 10

Multiple Choice

Which of the following statements about the business cycle is false?

• A) Toward the end of a recession, financial stocks typically increase in value as investment and borrowing activities accelerate.
• B) Once the economy hits a trough and begins to recover, consumer durable stocks become attractive investments.
• C) Once the economy has recovered and current levels of consumption are sustainable, businesses may consider modernising or expanding, thus stocks of capital goods industries become attractive investments.
• D) As the business cycle reaches a peak, inflation rates decrease.
• E) None of the above (that is, all are true statements).

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Definitions:

Messaging

The exchange of written text messages between two or more parties digitally.

Configures Automatically

Refers to software or devices that are designed to set themselves up with minimal or no manual intervention, adjusting settings based on the environment or usage.

Default Clock

The built-in timekeeping mechanism in a device that operates based on a predefined standard time setting unless altered by the user.

Mouse Keys

A feature that allows the numeric keypad to control the mouse cursor, making it easier for those with physical disabilities to use a computer.