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    Macroeconomics Study Set 60
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    Exam 19: The Microfoundations of Consumption and Investment
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    During a Financial Crisis, Such as the Great Depression or the U.S
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During a Financial Crisis, Such as the Great Depression or the U.S

Question 9

Question 9

Multiple Choice

During a financial crisis, such as the Great Depression or the U.S. recession of 2008-2009, financing constraints become _____ prevalent and investment spending _____.


A) more; increases
B) more; decreases
C) less; increases
D) less; decreases

Correct Answer:

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