II. TRUE OR FALSE
Directions: Read the following statements carefully. Identify whether it is true or false. Before each statement, write T if the
statement is true or F if it is false. (2 points each)
-1) During recession, companies face a decrease in sales revenues and profits.
2) An inflation rate is what a lender charges to an individual or business borrower.
_3) Interest rates clearly have applied to those who deal with export or import.
4) Low interest rates can also reduce consumer spending.
5) Inflation can't reduce the purchasing power of consumers.
6) The economy tends to follow a business cycle of economic booms followed by periods of stagnation or declination.
7) An interest rate is the amount that a lender charges an individual or business to borrow money.
8) Rising costs are likely to force businesses to raise prices on their own products and services,
9) When unemployment is low, consumer spending tends to be low.
10) The demand is the will and ability of consumers to purchase a particular commodity.​