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, the decrease in investment is attributable to
A) a fall in animal spirits.
B) a decrease in productivity.
C) a decrease in the growth rate of the quantity of money.
D) intertemporal substitution in working decisions.
Correct Answer:

Verified
Correct Answer:
Verified
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