An increasing number of firms decide to install tablets and computers so that customers are able to order and pay on their own.This can be expected to ________ investment spending by the firms.At the same time we can expect the unemployment rate to ________ and consumption spending to ________.Overall the effect on gross domestic product (GDP)is ________.
A) have no effect on; increase; decrease; negative
B) increase; increase; decrease; negative
C) increase; increase; increase; positive
D) increase; increase; decrease; uncertain
E) decrease; increase; decrease; negative

Question

Quizplus · Accepted Answer

Installing tablets and computers for customer self-service can increase investment spending by firms. However, this may also result in a decrease in employment as fewer employees may be needed due to the automation of ordering and payment processes. This may lead to a decrease in consumption spending as unemployed workers may have lower disposable income. It is uncertain how these factors will ultimately affect GDP, as the positive impact of investment spending may be offset by the negative impact of decreased employment and consumption spending.

An Increasing Number of Firms Decide to Install Tablets and Computers