For the three statements below, assert whether they are true or false. Any sort of uncertainty or anything that breaks the statement implies that you should choose false. Explain your answer. a. The only way that the Fed can affect the level of borrowed reserves is by adjusting the discount rate. b. The federal funds rate can never be above the discount rate. c. The federal funds rate can never be below the interest rate paid on reserves.

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.