If Business Managers Become More Pessimistic About Future Sales and Profits

question 148

Multiple Choice

If business managers become more pessimistic about future sales and profits, there will be

• A)a rightward movement along the autonomous investment function
• B)a leftward movement along the autonomous investment function
• C)an upward shift of the autonomous investment function
• D)a downward shift of the autonomous investment function
• E)no movement along or shift of the autonomous investment function

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Definitions:

Investment

The allocation of resources, such as capital, with the expectation of generating an income or profit.

Annual Returns

The percentage gain or loss on an investment over a one-year period.

Stock

Equity investment that represents ownership in a company and entitles the holder to a proportion of its profits.

Percentage Return

The increase or decrease in an investment, represented as a fraction of its initial cost and expressed as a percentage.