Card 78 / 145: Collateral shocks tend to amplify business cycles because
A) the returns to work are higher in booms than in recessions, so people work more during booms and less during recessions.
B) assets are typically worth more in booms than in recessions, and the value of assets tends to be positively correlated to firms' ability to obtain investment funding.
C) the uncertainty of recessions tends to increase people's job search time, while greater certainty decreases search time during booms.
D) the returns to investment are higher when others are investing as well; thus we see more investment during booms and less during recessions.

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