According to the secular stagnation explanation, the two "culprits" for why Western economies have not had strong recoveries in the aftermath of the financial crisis are:
A) low TFP and high labor costs.
B) political weakness and austerity policies.
C) a global savings glut and reluctance to invest.
D) negative real interest rates and a depreciating U.S. dollar.
E) low inflation and high unemployment.

Question

Quizplus · Accepted Answer

The secular stagnation explanation attributes the slow recovery of Western economies to a combination of a global savings glut, meaning that there is too much savings and not enough investment, and a reluctance to invest. This ultimately leads to low demand and low economic growth.

According to the Secular Stagnation Explanation, the Two "Culprits" for Why