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Why did firms continue to boost the capital spending

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Reference no: EM131737266

Question: During the 1990s, capital spending grew faster than consumption. As a result of this, total capacity also grew faster than usual, so the rate of capacity utilization fell from 1994 to 2000 in spite of a booming economy. Why did firms continue to boost their capital spending even as the rate of capacity utilization declined?

Reference no: EM131737266

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