When interest rates rise, the transactions demand for money usually select one: a. decreases. b. increases. c. does not change. d. decreases initially and then increases to the original position?

The answer is a. decreases. When the interest rate goes up, the transaction demand for money goes down or decreases. It goes the other way around when interest rates go down, the transaction demand for money is high or increases. It happens simply because a consumer can get more products at a lower interest rate, the tendency is to purchase more. 

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.