Asked by Jasmine Agosto on Apr 29, 2024
Verified
During recessions,investment in plant and equipment most likely
A) goes up.
B) is steady.
C) goes down.
D) is negative.
Investment
The operation of deploying resources, often financial, with the intention of earning returns.
- Comprehend the elements that define an investment and the effects of economic downturns on such investments.
Verified Answer
ZC
Zikyah ConwayMay 05, 2024
Final Answer :
C
Explanation :
During recessions, businesses tend to see a decline in demand, which makes them less likely to invest in expanding capacity. This means that investment in plant and equipment is likely to go down.
Learning Objectives
- Comprehend the elements that define an investment and the effects of economic downturns on such investments.