Which best deceived the nature of cause and effect in the context of the business cycle?

1 answer:

3 0

The option that best describes the nature of the cause and effect in the context of the business cycle is A. Each effect has other effects.
All markets economies go through periods when consumption-spending on goods and services rises. Consumers buy more, companies invest more, and production, income, profit and employment increase. These periods are always followed by periods when investment and spending fall, and unemployment rises. This is the business cycle.

You might be interested in

Answer the question on the basis of the following information. Assume that if the interest rate that businesses must pay to borr

Kay [80]

Answer:

The answer is: C) Investment spending by businesses varies inversely with the interest rate.

Explanation:

This statement is true all the time. When a company evaluates the costs and benefits of an investment, interest rate plays a fundamental part in those calculations. The two basic reasons for that are:

The higher the interest rate a company (or any individual) has to pay for a loan, the harder it is for the company to repay the loan.
The interest rate a bank charges is usually correlated to the opportunity cost of an investment. The higher the interest rates banks charge, the higher the internal rate of return (which is used to calculate the Net Present Value of an investment) will be. This is because banks don´t print money, they take in deposits and then they loan the money the someone else. So if the interest rate the bank charges is high, usually the interest rates the bank pays for the deposits is also high. Instead of investing, a company might just put their money on the bank and earn a better return rate.

7 0

2 years ago

A forecast that addresses the business cycle by predicting planning indicators is

zloy xaker [14]

Answer:

B. a demand forecast.

Explanation:

3 0

3 years ago

The process of buying an underpriced security and selling an equivalent overpriced security until the prices converge is known a

ipn [44]

The process of buying an underpriced security and selling an equivalent overpriced security until the prices converge is known as arbitrage. This statement is true.

<h3>What Is Arbitrage?</h3>

The arbitrage approach, used in foreign exchange trading, allows investors to lock in profits by simultaneously buying and selling the same security, good, or currency on two different marketplaces. By using this strategy, traders can profit from the disparities in pricing for the same asset across the two different regions that are represented on each side of the trade.

Arbitrage is the practice of purchasing an underpriced security and selling an equivalently-priced asset until the prices converge. Trading on illegal insider knowledge may result in abnormal profits even if the efficient market theory is accurate in a semi-strong sense.

To know more about Arbitrage, refer:

brainly.com/question/16178885

#SPJ4

7 0

1 year ago

An executive who prioritizes the organization's mission and the needs and goals of subordinates, rather than ego gratification a

julsineya [31]

The executive is exhibiting a mission-driven leadership characteristic.

6 0

3 years ago

Read 2 more answers

Points fo my homies eerrr eeerrr err goin a pull out a coop in the lot