Evidence from business cycle fluctuations in the United States indicates that

Question

Quizplus · Accepted Answer

Business cycle fluctuations in the United States suggest that a decline in the growth rate of money usually precedes a recession. This indicates a negative relationship between money growth and general economic activity - as money growth slows down, economic activity also slows down. Therefore, option D is the correct choice. Option A is incorrect as it suggests a negative relationship between money growth and general economic activity exists, but the specific relationship mentioned is not confirmed by the evidence. Options B and C are incorrect as they suggest alternative factors that precede recessions, which are not supported by the evidence.

Evidence from Business Cycle Fluctuations in the United States Indicates