(Consider This) During the Great Recession of 2007-2009

question 60

Multiple Choice

(Consider This) During the Great Recession of 2007-2009,

• A)real interest rates and investment spending both declined.
• B)real interest rates and investment spending both increased.
• C)real interest rates increased, choking off investment spending.
• D)real interest rates decreased, but expected returns from investment remained unchanged.

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Definitions:

Governmental Regulation

The laws, rules, and regulations established by government bodies to control activities within various sectors and protect public interests.

Capital Contributions

The money, property, or other assets that an owner or shareholder provides to a business either initially or to support ongoing operations.

Total Share

Refers to the total number of shares of stock that are owned by shareholders, including both public investors and private insiders or executives.

Net Income

The net income of a business following the subtraction of all costs and taxes from its gross earnings.