If consumers believe that next year a recession will occur (in a closed economy),then the real interest rate ________ and investment ________.
A)falls; declines
B)falls; increases
C)rises; increases
D)rises; declines

Question

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The Answer of If consumers believe that next year a recession will occur (in a closed economy),then the real interest rate ________ and investment ________.
A)falls; declines
B)falls; increases
C)rises; increases
D)rises; declines

If Consumers Believe That Next Year a Recession Will Occur