Which of the following scenarios explains why uncertainty can lead to increased volatility in economic fluctuations from investment?
A) You are not sure whether your fiancé will retain his job in the uncertain economic environment, and so you decide not to purchase a home with him.
B) Your firm starts laying off workers and you are not sure whether you will keep your job, so you reduce your spending by half.
C) Your friend warns you that your bank is about to collapse, so you withdraw your savings from that bank.
D) All of the answers are correct.
Correct Answer:
Verified
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