Expectations about the future influence the economic decisions that people make today.

Question

Quizplus · Accepted Answer

This is because people make decisions about investments, savings, borrowing and spending based on their expectations of what they believe will happen in the future. For example, if they expect that the economy will grow and their income will increase, they may be more likely to invest in stocks or buy a house. Conversely, if they expect an economic downturn or job loss, they may be more likely to save money or cut back on spending.

Expectations About the Future Influence the Economic Decisions That People