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1) Interest rates typically display a ____ pattern (relative to the business cycle). A) procyclical                    B)...

1) Interest rates typically display a ____ pattern (relative to the business cycle).

A) procyclical                    B) cyclically neutral                         C) countercyclical                             D) random

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Answer #1

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.

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