(Last Word) According to the Austrian School, the best explanation for what caused the Great Recession was that
A)tax rates that were too high discouraged spending.
B)government spending that was too low created insufficient public capital.
C)interest rates that were too low induced excessive borrowing.
D)interest rates that were too high discouraged firm borrowing and investment.

Question

Quizplus · Accepted Answer

The Austrian School argues that artificially low interest rates set by central banks lead to excessive borrowing and malinvestment, which eventually result in economic downturns like the Great Recession.

(Last Word) According to the Austrian School, the Best Explanation