Which of the Following Explanations Is Consistent with the Decline

Multiple Choice

Which of the following explanations is consistent with the decline in productivity growth that followed the Great Recession?

A) High levels of debt incurred prior to the Great Recession have hindered firms' ability to make productivity-enhancing investments.
B) The Federal Reserve kept interest rates too high, stifling investments that would increase productivity.
C) High levels of inflation following the Great Recession created too much uncertainty for firms, discouraging productivity-enhancing investments.
D) Consumer demand following the Great Recession exceeded firms' capacity to satisfy that demand.