Increased optimism about the future will lead to
A) less current investment and less future consumption.
B) more current investment and more future consumption.
C) more current investment and less future consumption.
D) less current investment and more future consumption.

Question

Quizplus · Accepted Answer

When people are more optimistic about the future, they are more likely to invest and take risks in the present, as they expect a positive return on their investment in the future. This leads to more current investment. Additionally, as people expect a positive future outcome, they may be more inclined to save less and consume more in the future, leading to more future consumption. Therefore, increased optimism about the future will lead to more current investment and more future consumption.

Increased Optimism About the Future Will Lead to