Open study

is now brainly

With Brainly you can:

  • Get homework help from millions of students and moderators
  • Learn how to solve problems with step-by-step explanations
  • Share your knowledge and earn points by helping other students
  • Learn anywhere, anytime with the Brainly app!

A community for students.

Which of the following is a main economic variable that affects business cycles? A. stagflation B. national income accounting C. interest rates D. personal savings

Economics - Financial Markets
See more answers at brainly.com
At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.

Join Brainly to access

this expert answer

SIGN UP FOR FREE
Interest rates
A. Stafglation
Personal Savings. Personal savings determine interest rates, since interest is just a price for borrowing money. If there are a lot of savings (like during a recession), then money supply is high and interest rate is low. If there is a lot of investing (like during an expansion), then money supply is low and interest rates are high. By definition a business cycle is the repeating process of savings exceeding investing and vice versa.

Not the answer you are looking for?

Search for more explanations.

Ask your own question

Other answers:

c.) interest rates Because, Business cycle has four stages: (i) expansion (increase in production and prices, low interests rates); (ii) crisis (stock exchanges crash and multiple bankruptcies of firms occur); (iii) recession (drops in prices and in output, high interests rates); (iv) recovery (stocks recover because of the fall in prices and incomes).so interest rates comes in first stage hence a main economic variable
Hello mariacipri, Interest rates could be an economic variable that affect business cycles. I say this because as a variable interest rates fluctuate in economies. The rate of the interest affects the way business functions. Loans for example are affected by interest rates. Thank you and have a great day. Economist 1

Not the answer you are looking for?

Search for more explanations.

Ask your own question