If deviations from trend in a macroeconomic variable are ...

[NClaborn]

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

[brittanywood]

Answer to Question 1

C

Answer to Question 2

A