Question: Which statement regarding capital investments is correct? Capital investments decrease during economic booms due toincreased capital flight. When the demand for capital rises, interest rates

Which statement regarding capital investments is correct?
Capital investments decrease during economic booms due toincreased capital flight.
When the demand for capital rises, interest rates fall.
Recessions discourage capital investments because incomes ofconsumers grow slowly.
High interest rates encourage capital investments duringrecessions.

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