Which feature of the 2008-2009 financial crises is key for the deficient financial liquidity effect?
A) very high real interest rates.
B) average labour productivity fell.
C) consumption and investment expenditures fell.
D) very low real interest rates.
E) employment and the price level fell.

Question

Quizplus · Accepted Answer

Very low real interest rates made it difficult for banks to lend money, which led to a decrease in financial liquidity.

Which Feature of the 2008-2009 Financial Crises Is Key for the Deficient