Capital flight increases a country's interest rate. This increase in the interest rate makes net capital outflow lower than it would be had the interest rate stayed the same

Foreign direct investment in the United States declined 42 percent in the first quarter of 2009. This means that

A) people or firms in other countries reduced their building of facilities or purchases of facilities in the United States by 42 percent in the first quarter of 2009. B) people or firms in the United States reduced their purchases of stocks and bonds in foreign countries by 42 percent in the first quarter of 2009. C) people or firms in other countries reduced their purchases of stocks and bonds in the United States by 42 percent in the first quarter of 2009. D) people or firms in the United States reduced their building of facilities or purchases of facilities in foreign countries by 42 percent in the first quarter of 2009.

The business cycle consists of four phases. In sequence, they are prosperity,

a. recovery, recession, and downturn b. recovery, downturn, and recession c. upturn, downturn, and recession d. downturn, recovery, and recession e. downturn, recession, and recovery