The U.S. and other industrializing nations depended heavily on ...

[nelaaney]

The U.S. and other industrializing nations depended heavily on international trade.
 
  Indicate whether the statement is true or false

Question 2

During the recession of 2008, the U.S.experienced lower real interest rates at the same time investment and GDP were falling.
 
  How would a Classical economist explain this recession? Provide a graph of the Classical capital market to illustrate your arguments.

[SamMuagrove]

Answer to Question 1

False (Unlike other nations, the U.S. did not.)

Answer to Question 2

This must have been caused by a fall in investment which reduced the capital stock and aggregate supply.

[nelaaney]

Excellent

[marict]

Gracias!