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

Question

anonymous · Answer

I'm not sure if it is contraction or expansion...

anonymous · Answer

@arabpride or @iambatman ?

arabpride · Answer

Well which makes more sense? In other words, define each of those words...

arabpride · Answer

@quixoticideals

anonymous · Answer

Contraction is when the economy slows- lower inflation and higher unemployment

anonymous · Answer

Expansion is the opposite

anonymous · Answer

I'm not sure if investments are more influenced by inflation or unemployment? I know GDP is effected too but I don't remember how...

arabpride · Answer

Contraction makes the most sense to me, decrease in investments and U.S. businesses... you thinking along the same lines?

anonymous · Answer

I'm honestly not sure. I guess high inflation wouldn't effect investments too much?

anonymous · Answer

I'll try it out. Thanks for your input!

arabpride · Answer

Hope I'm right 
~You're welcome
~Good Luck *^-^