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Macroeconomics Final - Part 4 of 4!
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Problem 9
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Problem 14
Macroeconomics Final - Part 4 of 4!
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22. Macroeconomic Schools of Thought / Austrian Model / Problem 9
Problem 9
What does von Hayek's theory suggest about the relationship between interest rates and economic cycles?
A
Interest rates have no effect on economic cycles.
B
Interest rates only affect the duration of expansions, not recessions.
C
Lower interest rates lead to expansions followed by deeper recessions.
D
Higher interest rates lead to expansions followed by deeper recessions.
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