Which of the following is not a characteristic of contraction?

CA Foundation · Business Economics · PYQS · January 2026
Which of the following is not a characteristic of contraction?
(A) A. Fall in level of investments
(B) B. Fall in employment levels
(C) C. Decrease in input demand pulls input prices down
(D) D. Bank credit expands

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. Bank credit expands

Topics: Business Cycles

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