The 2008-2009 recession in Canada was the result of
A) the Bank of Canada changing to a more anti-inflationary monetary rule.
B) the Bank of Canada changing to a less anti-inflationary monetary rule.
C) a reduction in private-sector investment.
D) a reduction in private-sector investment and net exports.
E) too much money chasing too few goods.

Question

Quizplus · Accepted Answer

The 2008-2009 recession in Canada was mainly caused by the reduction in private-sector investment, which was triggered by the global financial crisis. There was also a significant decrease in net exports, which further aggravated the economic downturn. These factors led to a decline in economic activity, rising unemployment, and a drop in household consumption.

The 2008-2009 Recession in Canada Was the Result of