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Economies that are in a ____________ will often not have sufficient new investment to replace depreciated capital because investors are usually unwilling to put their funds into a declining economy.

User Kinetic
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Recession. An economy in a recession will deter new capital injection from would be investors as there is uncertainty as to the potential return on investment. A philosophy of wait and see will typically prevail thus further negatively impacting a slumping economy.
User Andrei Manolache
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