If Firms Receive an Economic Forecast Predicting Future Decreases in the Growth

question 38

Multiple Choice

If firms receive an economic forecast predicting future decreases in the growth of real GDP, they are likely to respond by

• A) decreasing their level of investment spending to decrease future production capacity.
• B) increasing their level of investment spending to increase current production capacity.
• C) increasing their level of investment spending to increase future production capacity.
• D) decreasing their level of investment spending to decrease current production capacity.

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