Because investment is generally procyclical, it usually _______ when the economy _______.

Question

Quizplus · Accepted Answer

Investment is procyclical, which means it tends to move in the same direction as the economy. During a recession, businesses may be hesitant to invest due to uncertainty and decreased demand, leading to a decrease in investment. Therefore, the best choice is B, which states that investment decreases when the economy is in a recession.

Because Investment Is Generally Procyclical, It Usually _______ When the Economy