According to monetary theories of the business cycle, fluctuations are
a. independent of the banking system
b. more prevalent in countries with modern banking systems
c. more prevalent in agricultural countries
d. less prevalent in those countries with modern banking systems


Monetary theorists maintain that to eliminate the business cycle, it is necessary to eliminate
a. money
b. currency
c. bank creation of checkable deposits
d. bank reserves


During the contraction phase of the business cycle,
a. prices fall relative to costs, reducing profit margins
b. costs fall relative to prices, reducing profit margins
c. prices fall relative to costs, increasing profit margins
d. costs fall relative to prices, increasing profit margins

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The detailed answer for the above question is provided below The answer to the first question is d less prevalent in those countries with modern banki... View the full answer