During the Great Depression, investment plummeted because

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During the 1920s, there was a significant investment boom which resulted in an expanded stock of capital. As firms approached their desired level of capital stock, there was no need for new investment, causing a significant drop in investment during the Great Depression. Government policies related to investment tax credit and firms investing abroad are not significant factors in this context. While reduced consumer spending may have contributed to the overall economic downturn, it is not necessarily the primary factor behind the drop in investment.

During the Great Depression, Investment Plummeted Because