During the Great Recession of 2007-2009, real interest rates
A)declined to about zero, and investments increased sharply.
B)declined to about zero, and investments also declined sharply.
C)increased sharply, and investments declined significantly.
D)increased sharply, and investments also rose significantly.

Question

Quizplus · Accepted Answer

During the Great Recession, real interest rates declined to near zero due to monetary policy actions, but investments declined sharply due to economic uncertainty and reduced demand.

During the Great Recession of 2007-2009, Real Interest Rates