In the 1930s, Investment as a Share of GDP Was

question 38

Multiple Choice

In the 1930s, investment as a share of GDP was very low because

• A)businesses had very low sales expectations
• B)the nominal interest rate was very high
• C)the real interest rate was close to zero
• D)expansionary fiscal policy resulted in huge budget deficits, crowding out investment
• E)expansionary monetary policy resulted in high inflation creating uncertainty

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