If Firms Are More Optimistic That Future Profits Will Rise

question 182

Multiple Choice

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

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

---

Definitions:

Principal Residence

The main home in which a person lives and can qualify for certain tax benefits, such as the exclusion of capital gains upon sale.

Long-Term Care Insurance

Long-term care insurance is a type of insurance designed to cover the costs of long-term care services, including nursing home care, assisted living, or in-home care.

Medical Expenses

Costs incurred for the diagnosis, cure, mitigation, treatment, or prevention of disease, and for treatments affecting any part or function of the body.

Medical Expenses

Costs for healthcare that can potentially be deducted from one's taxable income if they exceed a certain percentage of the tax filer's adjusted gross income.