During a credit crunch, financing constraints become prevalent and investment spending .
A)more; increases
B)more; decreases
C)less; increases
D)less; decreases

Question

Quizplus · Accepted Answer

During a credit crunch, financing constraints become more prevalent, which makes it harder for businesses to obtain funding for investment spending. As a result, investment spending tends to decrease.

During a Credit Crunch, Financing Constraints Become Prevalent and Investment