If Firms Are More Pessimistic and Believe That Future Profits

question 301

Multiple Choice

If firms are more pessimistic and believe that future profits will fall and remain weak 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.

---

Definitions:

Psychophysiological Disorders

Physical illnesses that are thought to be caused or exacerbated by mental factors such as stress and anxiety.

Social Conditions

Refers to the societal factors and circumstances that influence individuals' lifestyles, behaviors, and attitudes.

Poverty

A state of economic deprivation, lacking sufficient income to meet basic needs such as food, shelter, and clothing.

Hypersomnolence Disorder

A sleep-wake disorder characterized by an extreme need for extra sleep and feelings of excessive sleepiness.