The correct answer is D) investment may not respond positively to lower interest rates since low demand for goods leads to low capital utilization and low investment.
During a recession, an investment may not respond positively to lower interest rates since low demand for goods leads to low capital utilization and low investment.
When the economy of a country declines considerably for a period of six months, economists think that is living a recession. Some indicators confirm that the economy is in a recession. There are drops on income, in the gross domestic product, manufacturing, employment, and retail sales. These are indicatives economists take into consideration to apply the term recession. Typically, a recession lasts from 9, 10 months to 18 months.
