Expectations about future profitability
A) only affect the level of investment and GDP in the future.
B) only affect the level of investment in the future, but can affect the level of GDP in the present.
C) can affect the level of investment and GDP in the present.
D) only affect the level of GDP in the future, but can affect the level of investment in the present.

Question

Quizplus · Accepted Answer

Expectations about future profitability can influence current investment decisions, as firms may increase or decrease investment based on anticipated future returns, which in turn can affect current GDP levels.

Expectations About Future Profitability