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Before periods of recession a. money supply growth rates tend to fall. b. money supply growth...

Before periods of recession

a. money supply growth rates tend to fall.
b. money supply growth rates always fall.
c. money supply growth rates tend to rise.
d. money supply growth rates sometimes rise and sometimes fall.

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Answer #1

Answer: a. money supply growth rates tend to fall.

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A recession is a period of declining economic performance across an entire economy that lasts for several months.

Some theories explain recessions as dependent on financial factors. These usually focus on either the overexpansion of credit and financial risk during the good economic times preceding the recession, or the contraction of money and credit at the onset of recessions, or both. Monetarism, which blames recessions on insufficient growth in money supply,

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