According to this Application, the volatility of energy prices can contribute to uncertainty in the economy. An increasingly uncertain future will tend to cause firms to
A) delay their investment decisions.
B) continue with a stable flow of investment spending so as not to get trapped by a downturning economy.
C) wait for significant GDP growth before reducing investments.
D) rely on the government to make their investment decisions for them.
A
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The debt service ratio is the ratio of
(a) external debt to the size of the service sector. (b) external debt to total GNP. (c) internal debt to the size of the service sector. (d) internal debt to total GNP. (e) none of the above.
Using C to represent consumption, I to represent investment, G to represent government spending, S to represent saving, X to represent exports, and M to represent imports, aggregate expenditures can be represented by:
a. C + I + G + (X + M). b. (C ? S) + G + (X ? M). c. C + I + G + (X ? M). d. C + I + G + (X ? M) ? S.