If Firms Are More Optimistic That Future Profits Will Rise

question 250

Multiple Choice

If firms are more optimistic that future profits will rise and remain strong 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:

Motivational States

Psychological conditions that drive individuals to act towards a goal or fulfil a need.

Hypothalamus

A region of the brain below the thalamus that coordinates both the autonomic nervous system and the activity of the pituitary, controlling body temperature, thirst, hunger, and other homeostatic systems.

Motor Movements

Actions resulting from the contraction of muscles, leading to movements of parts of the body.

Emotional Behavior

Refers to the complex spectrum of actions, reactions, and interactions resulting from an individual's feelings, mood, and emotional state.