If deviations from trend in a macroeconomic variable are negatively correlated with deviations from trend in real GDP, that variable is said to be
A) useless in predicting future movements in real GDP.
B) procyclical.
C) countercyclical.
D) acyclical.
Question 2
An important consequence of financial deepening is ________.
A) an increase in the number of new firms
B) a sharp increase in levels of saving & investment
C) higher profit rates
D) an expansion of bank loans relative to other funding sources
An example of a homeostatically controlled variable: blood levels of glucose in a human.
The reflection nebula NGC 1999 is brilliantly illuminated by V380 Orionis (center), a variable star
Negative feedback control of a regulated variable.
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