During a financial crisis, such as the Great Depression or the U.S. recession of 2008-2009, financing constraints become _____ prevalent and investment spending _____.
A)more; increases
B)more; decreases
C)less; increases
D)less; decreases

Question

Quizplus · Accepted Answer

During a financial crisis, financing constraints become more prevalent due to tighter credit conditions, leading to a decrease in investment spending as businesses and consumers find it harder to obtain financing.

During a Financial Crisis, Such as the Great Depression or the U.S