A recession is not caused by any economic force other than nation wide loss of confidence. If the economy is perceived as being unstable, banks are conservative in lending money, investors take fewer risks and hence economic growth is slowed.Which of the following, if true, would most strengthen the argument above.a)A recession is getting effected by the response of the Federal Reserveandrsquo;s setting of interest rates.b)A recession can be brought on by the failure of a major bank that had been loaning money.c)Slowed economic growth is not the only result of a recession.d)When investors begin taking greater risks it is enough to stimulate economic growth.e)It is a fallacy to assume that economic growth is necessary for economic stability.Correct answer is option 'D'. Can you explain this answer?

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a)
A recession is getting effected by the response of the Federal Reserve’s setting of interest rates.
b)
A recession can be brought on by the failure of a major bank that had been loaning money.
c)
Slowed economic growth is not the only result of a recession.
d)
When investors begin taking greater risks it is enough to stimulate economic growth.
e)
It is a fallacy to assume that economic growth is necessary for economic stability.

Correct answer is option 'D'. Can you explain this answer?

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A recession is not caused by any economic force other than nation wide...

Identify the question: The key word is strengthen. Work the argument: C: A recession is caused only by a national loss of confidence. P: If people think the economy is sluggish, they won’t invest. (D) strengthens the link between investor confidence and economic growth by stating that greater investment strengthens the economy. (A) and (B) weaken the conclusion by offering other causes for a recession. (C) is backward; we don’t care what recessions cause; we care what causes a recession. In (E), economic stability is never mentioned.

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A recession is not caused by any economic force other than nation wide...

B)During a recession, consumer spending tends to decrease due to uncertainty and lack of confidence in the economy.

c)During a recession, businesses tend to cut back on hiring and investments due to a lack of confidence in the economy.

d)Government policies and regulations can have a significant impact on the stability and confidence in the economy.

e)The stock market tends to be volatile during a recession, reflecting the lack of confidence in the economy.

Answered by Talent Skill Learning · View profile

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A recession is not caused by any economic force other than nation wide loss of confidence. If the economy is perceived as being unstable, banks are conservative in lending money, investors take fewer risks and hence economic growth is slowed.Which of the following, if true, would most strengthen the argument above.a)A recession is getting effected by the response of the Federal Reserve’s setting of interest rates.b)A recession can be brought on by the failure of a major bank that had been loaning money.c)Slowed economic growth is not the only result of a recession.d)When investors begin taking greater risks it is enough to stimulate economic growth.e)It is a fallacy to assume that economic growth is necessary for economic stability.Correct answer is option 'D'. Can you explain this answer?

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