Evidence Indicates That a Recession Occurs at About the Same

Multiple Choice

Evidence indicates that a recession occurs at about the same time as a decrease in investment. According to the real business cycle theory, a decrease in investment is attributable to

A) a decline in the growth rate of productivity.
B) intertemporal substitution in working decisions.
C) a decline in the growth rate of the quantity of money.
D) a fall in animal spirits.