How does a recession in the United States affect the level of foreign investment undertaken by American businesses?
A) Businesses tend to increase the level of foreign investment during a recession.
B) Businesses tend to decrease the level of foreign investment during a recession.
C) Businesses tend to maintain the same level of foreign investment over the business cycle.
D) It is against the law businesses to engage in foreign investment during a recession.

Question

Quizplus · Accepted Answer

During a recession, businesses tend to decrease the level of foreign investment due to the uncertain economic conditions and lack of available funds. As a result, they focus on stabilizing their domestic operations.

How Does a Recession in the United States Affect the Level