Business, 22.11.2019 06:31, badpotterchris

Which statement does not describe the effects of a leverage cycle? a) in good economic times, the surge of lending that may occur in a leverage cycle may exaggerate the episode of economic growth. b) a sharp reduction in credit, perhaps combined with the deflating prices of a dot-com stock price bubble or a housing bubble, makes the economic downturn worse than it would otherwise be. c) the deflating prices of an asset bubble will not make an economic downturn look worse if it is accompanied by a sharp reduction in credit. d) a leverage cycle can be part of what leads prices of certain assets—like stock prices or housing prices—to rise at unsustainably high annual rates.

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Which statement does not describe the effects of a leverage cycle? a) in good economic times, the s...