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Author Question: Which statement explains how a downtrend in economic growth can produce a vicious cycle? a. ... (Read 64 times)

mpobi80

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on: Jul 8, 2018
Which statement explains how a downtrend in economic growth can produce a vicious cycle?
 
  a. People discount the future, which causes them to spend more in the short-term, thus causing inflation to rise.
  b. People feel uncertain so they spend less, which causes businesses to cut back on wages, which causes people to have less money to spend.
  c. People expect a better return on their investments, which causes the government to increase interest rates, which causes businesses to cut back on wages.
  d. People want to take advantage of low prices, which causes them to borrow more money, which reduces investment capital available for businesses to expand operations.

Question 2

Which of these most directly helps businesses expand their operations?
 
  a. Increased tariffs
  b. Autarkic policies
  c. Capital investment
  d. Progressive taxation


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kaykay69

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Reply #1 on: Jul 8, 2018
Answer to Question 1

Answer: b

Answer to Question 2

Answer: c


mpobi80

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Reply #2 on: Jul 8, 2018
TY


kaykay69

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Reply #3 on: Jul 8, 2018
Happy to Help


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