The Economic Machine Works
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Questions and Answers

What are the two cycles of debt swing discussed by Ray Dalio?

  • Short-term (5 to 8 years) and long-term (75 to 100 years) (correct)
  • Short-term (3 to 5 years) and long-term (100 to 150 years)
  • Short-term (10 to 15 years) and long-term (50 to 75 years)
  • Short-term (8 to 10 years) and long-term (60 to 80 years)
  • When does the economic contraction and deleveraging typically occur?

  • When the debt level keeps increasing
  • During an economic expansion
  • When policymakers offer lower rates and fiscal stimulus
  • After a negative catalyst triggers the shock (correct)
  • Why are short-term debt cycles more discussed than long-term debt cycles?

  • They are more predictable
  • They are easier to track and more immediate (correct)
  • They have a greater impact on the economy
  • They are directly influenced by policymakers
  • What triggers an economic expansion, according to the text?

    <p>Increasing system's debt level</p> Signup and view all the answers

    What is the duration of a short-term debt/credit cycle?

    <p>5-10 years</p> Signup and view all the answers

    When does the system's debt level keep increasing during an economic expansion?

    <p>Until the economy becomes susceptible to an economic shock</p> Signup and view all the answers

    What is the duration of a long-term debt cycle according to Ray Dalio?

    <p>75-100 years</p> Signup and view all the answers

    What triggers economic contraction and deleveraging?

    <p>A negative catalyst</p> Signup and view all the answers

    Why are short-term debt cycles more immediate and easier to track?

    <p>They last for a shorter duration</p> Signup and view all the answers

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