During the \(1980 \mathrm{~s}\), (LO4) a) both American investment abroad and foreign investment in the United States increased b) both American investment abroad and foreign investment in the United States decreased c) American investment abroad increased and foreign investment in the United States decreased d) American investment abroad decreased and foreign investment in the United States increased

To determine if this statement is correct, let's consider the following: During the 1980s, the United States experienced significant economic growth under President Ronald Reagan's administration. This growth led to an increase in American investment abroad as companies gathered capital and looked for opportunities to expand their market and production overseas. At the same time, there was also an increase in foreign investment in the United States, as investors from around the world were attracted by the stable and growing U.S. economy. For example, Japanese investors were increasingly investing in the U.S. real estate market. Based on this information, it appears that option A is correct. However, let's assess the other options before making a final decision. #Step 2: Evaluate Option B#

This option contradicts the information provided in Step 1, which highlighted the increase in both American investment abroad and foreign investment in the United States during the 1980s. Therefore, option B can be ruled out as incorrect. #Step 3: Evaluate Option C#

Given the information in Step 1, we know that American investment abroad increased during the 1980s. However, it was also mentioned that foreign investment in the United States grew during this time period. Therefore, option C is not consistent with the historical data and can be ruled out as incorrect. #Step 4: Evaluate Option D#

This option contradicts the information we already know about the trends of American investment abroad during the 1980s. As discussed in Step 1, American investments abroad grew during this time period. Therefore, option D can be ruled out as incorrect. #Step 5: Select the correct answer#

Now that we have evaluated all the options, it is clear that: - Option A is consistent with the historical information on investment flows during the 1980s: both American investment abroad and foreign investment in the United States increased. - Options B, C, and D are not consistent with the historical data and can be ruled out as incorrect. Therefore, the correct answer is: a) Both American investment abroad and foreign investment in the United States increased during the 1980s.