If business people become more pessimistic about the future, we would expect that
A) the investment curve would shift inward to the left.
B) the saving function would shift up.
C) the consumption function would shift up.
D) investment spending would increase.

Question

Quizplus · Accepted Answer

When business people become more pessimistic about the future, they are less likely to invest in future projects. This would result in the investment curve shifting inward to the left, indicating a decrease in the level of investment at each interest rate.

If Business People Become More Pessimistic About the Future, We