Investment spending initially __________ after 1929 due to _______ real interest rates, then remained low for the rest of the decade because ____________.
A) decreased; rising; a steep fall in the baseline level of investment spending.
B) increased; falling; a steep fall in the baseline level of investment spending.
C) decreased; falling; a steep fall in the baseline level of investment spending.
D) increased; rising; a steep fall in the baseline level of investment spending.

Question

Quizplus · Accepted Answer

Investment spending decreased after 1929 due to rising real interest rates, which made borrowing more expensive and investment less attractive. Then, it remained low because of a steep fall in the baseline level of investment spending, reflecting the overall economic downturn of the Great Depression.

Investment Spending Initially __________ After 1929 Due to _______ Real

Investment Spending Initially ____ After 1929 Due to _ Real