<p>no,</p>
<p>c) is not correct because the question literally states that the output will increase. When we talk about economic swings we mean economy going back and forth between recession and expansion.</p>
<p>d) is not correct. It requires both a) and b) to be correct at the same time. b) is not correct because the question already states that economy will grow. The question is just whether more or less than spending. Recession is typically defined as period of economic decline.</p>

CC BY-SA 4.0
2024-05-19T18:04:57.270Z
Wouldn't the economic swings be a proper answer because they said that the total output has the possibility to increase more or less than the output?
youssef ashraf
CC BY-SA 4.0
2024-05-19T19:34:02.607Z
@youssefashraf no because it’s still increasing. As I explained in my answer typically by swing we mean output switching from negative to positive growth. Also in this case there is no fluctuation at all we just don’t know if the increase in output will be more or less than the spending but it will be just one of them
1muflon1
CC BY-SA 4.0
2024-05-20T20:11:12.640Z
Understood, thank you for your help
youssef ashraf
CC BY-SA 4.0
2024-05-19T17:03:20.547Z
2024-05-19T17:03:20.547Z
1muflon1
<p>Credit used for investment purposes can lead to an increase in total spending and an increase in total output, with the possibility of the total output increasing either more or less than the total spending.</p>
<p>As a consequence, the economy may suffer from....</p>
<p>a) Inflation</p>
<p>b) Recession</p>
<p>c) Modest economic swings</p>
<p>d) A&amp;B</p>

<macroeconomics><monetary-policy><investment><credit>
Shouldn't the answers c & d be correct?
youssef ashraf
# Shouldn't the answers c & d be correct?

(Asked by: username_0 on 2024-05-19)

Credit used for investment purposes can lead to an increase in total spending and an increase in total output, with the possibility of the total output increasing either more or less than the total spending.

As a consequence, the economy may suffer from....

a) Inflation

b) Recession

c) Modest economic swings

d) A&B

**Tags:** macroeconomics, monetary-policy, investment, credit

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## 1 answers

### Answer by username_1 on 2024-05-19. Score: 0

no,

c) is not correct because the question literally states that the output will increase. When we talk about economic swings we mean economy going back and forth between recession and expansion.

d) is not correct. It requires both a) and b) to be correct at the same time. b) is not correct because the question already states that economy will grow. The question is just whether more or less than spending. Recession is typically defined as period of economic decline.

> **Comments:**
> **username_0**: Wouldn't the economic swings be a proper answer because they said that the total output has the possibility to increase more or less than the output?  
> **username_1**: @youssefashraf no because it’s still increasing. As I explained in my answer typically by swing we mean output switching from negative to positive growth. Also in this case there is no fluctuation at all we just don’t know if the increase in output will be more or less than the spending but it will be just one of them  
> **username_0**: Understood, thank you for your help  

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