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Buy custom What Factors Led to the Slowdown of the US Economy in 2001? Have matters improved in 2004? Evaluate the Risks of a Downturn in 2005 if Oil Prices Remain Over $40 a Barrel. What Are the Effects on the European and Asian Economies?

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Topic: Business
Number of pages / Number of words: 9 / 2282
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One major factor is investment. As firms post greater profits, they see an opportunity to earn more money if the business expands, but in order to expand, businesses need money and that money comes from investment. Money is invested in businesses in the hope that consumer confidence will not fade and that demand for various products and services will increase gradually...


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The initial profits posted by companies in the so-called ?dot-com' sector were high and above all expectations thus a belief that further investments would result in even higher profits ensued. Their beliefs were not without grounds as the rate of profit increase during this expansion of the US economy was a staggering 88...


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