Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Reporting and Analysis

Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon

6th edition

9780077632182, 78025672, 77632184, 978-0078025679

Students also viewed these Economics questions