Suppose That Managers Forecasted a Large Decline in Expected Sales

question 138

Multiple Choice

Suppose that managers forecasted a large decline in expected sales and profits and so their confidence plummets. According to the ________, this forecast might start a business cycle.

• A) Keynesian cycle theory
• B) circular flow theory
• C) monetarist cycle theory
• D) new classical cycle theory

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Definitions:

Undue Influence

Improper or unfair persuasion that leads an individual to act against their free will or to make decisions that benefit another, particularly in contracts or wills.

Voidable

A legal term describing a contract or transaction that may appear valid but can be annulled by one of the parties due to certain defects or circumstances.

Void

Refers to a legal declaration that a contract or transaction is invalid and without legal effect from its inception.

Unenforceable

Refers to a contract or agreement that, due to certain legal deficiencies, cannot be legally imposed or upheld by a court.