During the Expansion Phase of the Business Cycle,business Firms Become

question 69

Multiple Choice

During the expansion phase of the business cycle,business firms become optimistic about their future earning capacity as do banks.Nominal interest rates rise during expansions.Investment lending could be expected to

• A)rise if the change in future earnings is thought to be greater than the change in interest rates.
• B)stay the same.
• C)fall.
• D)fall if the change in future earnings is thought to be greater than the change in interest rates.

---

Definitions:

Dislocation

A medical condition in which there is an abnormal displacement of the articulation between two bones, often causing pain and dysfunction.

Incision

A cut made in the body by a surgeon for the purpose of performing surgery.

Laceration

A deep cut or tear in skin or flesh.

Comminuted Fracture

A type of bone fracture where the bone is broken into several pieces.