Question

Rising interest rates have made borrowing more costly to consumers. As a result

of the most recent increase in interest rates, borrowing and consumption have
fallen throughout the economy, triggering a contractionary period. Growing
uneasy, citizens have been asking Congress to make an official statement as to
how long this contractionary period is expected to last. Which of the following is
an appropriate response?

Answer 1

it depends on the measures taken to ensure that economy is stable.

Answer 2

1. it is difficult to say since contractionary periods have varying lengths in different business cycles.

2. shock

3. high unemployment

4. two

5. expansion stage of the business cycle

Step-by-step explanation:

just took it