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Which one of the following was not a contributing cause of the decline in investment and thus the recessionary expenditure gap occurring during the US recession of 2001?
A. Pessimism relating to the stock market crash

B. The collapse of numerous Internet-related start-up firms

C. Low-interest rates

D. Overcapacity in major industries

Respuesta :

Answer:

Hence the correct option is Option C. Low interest rates.

Explanation:  

Low interest rates:-

Because the real GDP is lower than the potential GDP at the full employment level (Overcapacity). Internet based start ups and stock market are collapsing (The dot com bubble).

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