During recessions investment

a. falls by about the same percentage as GDP.

b. falls by a smaller percentage than GDP.

c. falls by a larger percentage than GDP.

d. falls but the percentage change is sometimes much larger and sometimes much smaller.

During recessions investment falls by a smaller percentage than GDP.

Answer: Option B

Explanation:

GDP is the gross domestic product of the country which talks about the growth rate of the country. During the time of recession in the trade cycle, the GDP of a country falls down.

The recession also sees the falling down of the demand, income, investment and so on. But during the time of recession, the fall in investment by the citizens of the country in various assets is less than the fall in the GDP of the country.