If long-term investments are increasing,

Question

Quizplus · Accepted Answer

Long-term investments typically require a longer period of time before they yield a return, meaning investors need to be willing to tie up their money for an extended period. Therefore, if long-term investments are increasing, it suggests that investors are confident that they can earn a higher rate of return over the long term than what they could earn through current consumption. This may occur if interest rates are relatively low, as this can make investment options more attractive compared to saving or spending money now.

If Long-Term Investments Are Increasing