If investors are less certain about the economic outlook,they will:
A) reduce capital investments that are less irreversible.
B) reduce capital investments that are more irreversible.
C) raise capital investments that are less irreversible.
D) raise capital investments that are more irreversible.

Question

Quizplus · Accepted Answer

When investors are less certain about the economic outlook, they tend to reduce capital investments that are more irreversible because these investments are harder to reverse without incurring significant costs if the economic conditions worsen.

If Investors Are Less Certain About the Economic Outlook,they Will