Please choose a letter answer and explain the answer please.

1. If you believe the economy is about to go into a recession you might change your asset allocation by selling and buying .

1. growth stocks, long-term bonds
2. long-term bonds, growth stocks
3. defensive stocks, growth stocks
4. defensive stocks, long-term bonds

2. A big increase in government spending is an example of .

1. a demand shock
2. a supply shock
3. an unsurprising shock
4. none of the above

3. Which of the following is not an example of fiscal policy?

1. Social Security spending
2. Medicare spending
3. government purchases of Treasury securities
4. changes in the tax rate

4. A trough is .

1. a transition from an expansion in the business cycle to the start of a contraction
2. a transition from a contraction in the business cycle to the start of an expansion
3. only something used by farmers to feed pigs and is not a term in investments
4. none of the above