According to the real business cycle theory, the decrease in investment is attributable to
A. a fall in animal spirits.
B. a decrease in productivity.
C. a decrease in the growth rate of the quantity of money.
D. intertemporal substitution in working decisions.
Answer:B
According to the real business cycle theory, the decrease in investment is attributable to
A. a fall in animal spirits. B. a decrease in productivity. C. a decrease in the growth rate of the quantity of money. D. intertemporal substitution in working decisions.