Question

Which statement best describes how governments respond to changes in the business cycle? Check all that apply

governments make current see more available

governments refuse to pass a budget

governments change their policies governments reduce spending

government‘s manipulate interest rates.

Answer 1

On edge, the answers would be:

1,3,4,5. Or

A. Governments make currency more available. (correct)

B. Governments refuse to pass a budget. (incorrect)

C. Governments change their policies. (correct)

D. Governments reduce spending. (correct)

E. Governments manipulate interest rates. (correct)

Answer 2

The Government responds to changes in business cycle by,

1. Making current see more available.

2. By changing their policies.

3. By reducing spending.

4. By manipulating interest rates.

Business cycle is termed as a way of contraction, expansion, and recovering of an economy. When the economy is down in country it shows that there is recession.