If companies decrease investment spending because of lower expected returns on projects, forecasters should anticipate (everything else the same)that

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If companies decrease investment spending due to lower expected returns on projects, this indicates a decrease in demand for loans, causing interest rates to fall. This could lead to an increase in borrowing and spending in other sectors, potentially leading to an increase in GDP. However, there is no indication that the money supply will fall or that saving will increase in this scenario.

If Companies Decrease Investment Spending Because of Lower Expected Returns