1) Interest rates typically display a ____ pattern (relative to the business cycle).
A) procyclical B) cyclically neutral C) countercyclical D) random
Procyclic variable are those variable which move along the business cycle(in the same direction).Interest rate is Procyclic because in expansion the interest rate rises and falls during recession.
Answer-A
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1) Interest rates typically display a ____ pattern (relative to the business cycle). A) procyclical B)...
1) Default premiums typically display a ____ pattern (relative to the business cycle). A) procyclical B) cyclically neutral C) countercyclical D) random
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