One explanation for the sharp decline in inventory investment during the 2007-2009 financial crisis was ________.
A)financing constraints
B)the rise in the level of income
C)the volatility of interest rates
D)the increase in total spending and therefore costs

Question

Quizplus · Accepted Answer

Financing constraints, such as difficulty obtaining loans due to the credit freeze, were a key factor in the decline in inventory investment during the financial crisis.

One Explanation for the Sharp Decline in Inventory Investment During