Why did firms continue to boost their capital spending even


Problem

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?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: Why did firms continue to boost their capital spending even
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