Which best describes the nature of cause and effect in the context of the business cycle?

O Each effect has other effects.

O Causes and effects cannot be easily defined.

O A cause has multiple independent effects.

O Each effect has a cause.

Each effect has other effects.

Explanation:

Let's say that there is a group of people in a certain area who need warm clothes for the winter next month.

This will most likely create an effect in the market. Many people will understand that they have opportunities to create profit if they produce the clothes that people can use for winter.

This producer's action will resulted in another effect, where people start to aware of the existence of the product and spend their money to purchase it. This will lead to another effect when other competitors see it and decided to come and compete by selling similar products.

And so on. All the chain of effects will continue until they form one perfect cycle.