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.

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Definitions:

Variables

Elements or characteristics that can vary within or across subjects.

Correlation

A statistical measure that expresses the extent to which two variables change together, indicating a relationship or association.

Height

The measurement of how tall a person or object is, typically measured in units like feet, inches, or meters.

Age

refers to the length of time that an individual or entity has existed, typically measured in years.