The data shows that total profit in the U.S. economy A) has ...

[pragya sharda]

The data shows that total profit in the U.S. economy
 
  A) has decreased steadily over time.
  B) is not influenced by the business cycle.
  C) tends to decrease in recessions, increase in expansions.
  D) tends to increase in recessions, decrease in expansions.
  E) tends to increase in even years, and decrease in odd years, although no one can explain why.

Question 2

Under the reasonable dynamic assumptions discussed in the text, a monetary contraction should result in
 
  A) an immediate rise in the interest rate, and no further interest rate changes.
  B) an immediate rise in the interest rate, and then a fall in the interest rate over time.
  C) an immediate rise in the interest rate, and then a further rise over time.
  D) a very gradual but steady rise in the interest rate to its new equilibrium level.
  E) no change in the interest rate initially, and then a sudden rise to its new equilibrium value.

[JCABRERA33]

Answer to Question 1

C

Answer to Question 2

B