Question

According to the Austrian business cycle theory which of the following is true about the economy?

Answer 1

Answer:

D) All of the above

Explanation:

This theory was created by the Austrian School in order to explain and understand the market growth based on the credit increase proposed by bank institutions (a central bank). In other words, this theory arguments that the economic cycles, especially financial crisis and recession, are caused by the "creation" of the money. How this money will be used and the result of this application is the central concern of this theory.