In the U.S., most of the recessions are associated with:
A) ill-timed fiscal policy.
B) decreasing net exports.
C) decreases in investment.
D) large decreases in consumption.

Question

Quizplus · Accepted Answer

Decreases in investment are often a leading cause of recessions in the United States. This is because when businesses and investors are not spending money on new projects or expansions, there is less demand for goods and services, which can ultimately lead to job losses and decreased consumer spending. While fiscal policy and net exports can also play a role in recessions, decreases in investment are often the primary driver. Large decreases in consumption can be a symptom of a recession, but they are not typically the main underlying cause.

In the US, Most of the Recessions Are Associated With