(Consider This) During the Great Recession of 2007-2009,
A)real interest rates and investment spending both declined.
B)real interest rates and investment spending both increased.
C)real interest rates increased, choking off investment spending.
D)real interest rates decreased, but expected returns from investment remained unchanged.

Question

Quizplus · Accepted Answer

During the Great Recession, both real interest rates and investment spending declined due to economic uncertainty and reduced demand for borrowing and investment.