Question

If a series of events results in a decrease in investments in U.S. businesses, what is the result on the U.S. economy?

Answer 1

when investments in the US decreases a couple things happen. From a domestic standpoing this decreases AD directly causing GDP to fall, unemployment to rise, and prices to fall. On an international scale this means the dollar is less attractive, so the dollar depreciates. Depreciating dollar leads to more exports and fewer imports.