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Which of the following statements about the business cycle and policy prescriptions are consistent with the Austrian business cycle theory? Group of answer choices The
Which of the following statements about the business cycle and policy prescriptions are consistent with the Austrian business cycle theory? Group of answer choices The business cycle can be caused by the Central Bank's manipulation of the interest rate; the policy of "laissez faire" is the best way to prevent and respond to recessions. The business cycle is caused by fluctuations of aggregate demand; active stabilization policies by the government and the Central Bank are the most effective way to end a recession. The business cycle is caused by financial speculators; the most effective way to prevent and/or end a recession is by tightening financial regulations. The business cycle can be traced to a rising inequality between the rich and the poor; the best way to prevent or tackle recessions is by introducing policies which redistribute wealth from the rich to the poor
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