The Variability of Business Profits

question 37

Multiple Choice

The variability of business profits:

• A) Helps explain the instability of investments over time
• B) Does not affect investment spending, which depends on expected profits not current profits
• C) Explains why the durability of capital goods is variable
• D) Causes the variations in consumption spending over time

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Definitions:

Independent Retailer

A retail business owned and operated by an individual or family rather than part of a larger retail chain or franchise.

Anchor Stores

Large and prominent retail stores used to drive traffic to smaller retailers within a shopping mall or center, often well-known department stores or chains.

Nordstrom

An upscale American department store chain known for its high-quality customer service, extensive selection of merchandise, and emphasis on luxury brands.

Macy's

An American department store chain founded in 1858, known for its wide range of consumer goods and annual Thanksgiving Day parade.