The beginning of an economic contraction coincides with a/an ________ while during an economic expansion ________
A)decrease in government spending; investment increases.
B)decrease in investment; investment increases.
C)decrease in government spending; government spending increases.
D)increase in government spending; investment decreases.

Question

Quizplus · Accepted Answer

During the beginning of an economic contraction, investment typically decreases due to lower business confidence and consumer spending. During an economic expansion, investment increases as businesses expand and consumer confidence grows.

The Beginning of an Economic Contraction Coincides with A/an ________