A trough is a point in the business cycle where economic activity has bottomed out and is transitioning from a contraction (recession) to an expansion (recovery). Option A describes a peak, option C describes a depression, and option D is irrelevant to the investment term. Option E is a general option that could be true, but not necessarily for this specific question.

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A Trough Is _______

Question 81

Multiple Choice

A trough is _______.

A) a transition from an expansion in the business cycle to the start of a contraction
B) a transition from a contraction in the business cycle to the start of an expansion
C) a depression that lasts more than three years.
D) only something used by farmers to feed pigs and not an investment term
E) none of these

Correct Answer: