If Firms Are More Optimistic That Future Profits Will Rise

question 250

Multiple Choice

If firms are more optimistic that future profits will rise and remain strong for the next few years,then

• A)investment spending will fall.
• B)investment spending will rise.
• C)investment spending will remain unaffected.
• D)investment spending will rise and then fall.

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Definitions:

Social Security

A government program that provides financial assistance to people with an inadequate or no income, particularly the elderly, disabled, and families with dependent children.

Surpluses

Surpluses are situations in which the supply of a good or service exceeds its demand, often leading to lower prices.

Ronald Reagan

The 40th President of the United States, serving from 1981 to 1989, known for his conservative policies, economic reforms, and role in ending the Cold War.

George Bush

Refers to either George H. W. Bush (41st President of the United States) or George W. Bush (43rd President of the United States), both members of the Bush political family.