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:

Feedforward Controls

Ensure that directions and resources are right before the work begins.

Anticipate Potential Problems

The process of forecasting future challenges or issues that may arise during the course of a project or in the operation of a system, with the aim of mitigating them in advance.

Preventive Action

Steps taken to identify and eliminate potential issues before they occur to prevent future problems.

Benchmarking

Uses external comparisons to gain insights for planning.