Suppose That an Economist Finds That in Most Recessions, Which

Multiple Choice

Suppose that an economist finds that in most recessions, which are times when employment is low, that real interest rates are extremely high. This finding would pose the biggest problem for the

A) new Keynesian theory of the business cycle.
B) Keynesian theory of the business cycle.
C) new classical theory of the business cycle.
D) real business cycle theory.