A procyclical variable ________.
A)moves up during expansions and down during contractions
B)moves up during contractions and down during expansions
C)moves in the opposite direction of aggregate economic activity
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

A procyclical variable moves in the same direction as aggregate economic activity, meaning that it typically moves up during economic expansions and down during contractions.

A Procyclical Variable ________