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 remain unaffected. B) investment spending will rise and then fall.
C) investment spending will rise. D) investment spending will fall.
D
You might also like to view...
When the price level falls, the aggregate planned expenditure curve shifts ________, equilibrium expenditure ________ and there is a movement ________ along the aggregate demand curve
A) upward; decreases; downward B) upward; increases; downward C) upward; increases; upward D) downward; decreases; downward E) downward; increases; upward
The following data summarize the expenditures for the country of XYZ during 2003 in millions of alphabet, the currency of country XYZ
Gross Private Domestic Investment $300 Business Fixed Investment $200 Change in Inventories $100 Exports $200 Imports $200 Personal Consumption Expenditures $800 Government Consumption Expenditures and Gross Investment $500 Statistical Discrepancy $10 Depreciation Expenditures $50 a. Calculate net exports b. Calculate GDP c. Calculate national income d. Assume that the GDP deflator is 120 and calculate real GDP for 2003.