Q. Consider the following:
1.Low Interest Rates
3.Asset Bubbles Burst
Which of the above is/are the cause(s) behind recession?

[A] 2 and 3 only

[B] 1 only

[C] 3 only

[D] 1 and 3 only

Answer: A

Causes of recession are – High interest rates, deflation, asset bubbles burst, stock market crash, loss of consumer confidence, deregulation, credit crunch, etc.

Source: The Hindu