During the Great Depression,real GDP fell.Which of real consumption and real investment also fell?
A) Both real consumption and real investment
B) Real consumption only
C) Real investment only
D) Neither real consumption nor real investment

Question

Quizplus · Accepted Answer

During the Great Depression, there was a significant decline in economic activity. As a result, both real consumption and real investment declined. Consumers had less disposable income and, therefore, spent less on goods and services, leading to a drop in real consumption. At the same time, businesses had fewer profits and, therefore, invested less in new projects and machinery, causing a decline in real investment.

During the Great Depression,real GDP Fell