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During Recessions,interest Rates Tend to Fall Because

Question 7

Multiple Choice

During recessions,interest rates tend to fall because


A) consumers attempt to borrow money to make up for their falling income.
B) business borrowing for investment purposes tends to fall during recessions.
C) lower real resource prices create profit opportunities for banks.
D) recessions shift the economy's long-run aggregate supply curve to the left.

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