Multiple Choice
During a recession,governments tend to run budget deficits.What is the result of this on the real interest rate and investment spending?
A) The real interest rate decreases and investment spending increases.
B) The real interest rate increases and investment spending decreases.
C) The real interest rate and investment spending both decrease.
D) The real interest rate and investment spending both increase.
Correct Answer:
Verified
Correct Answer:
Verified
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