Which of these typically lowers investor confidence and forces international companies to scale back or cancel proposed investments?

Question

Quizplus · Accepted Answer

High rates of inflation, increasing budget deficits, and falling productivity levels are all factors that can lead to a decrease in investor confidence and cause international companies to scale back or cancel proposed investments. High inflation rates can reduce the purchasing power of a country's currency, making it less attractive to investors. Increasing budget deficits can signal economic instability and uncertainty, causing investors to be cautious. Falling productivity levels can indicate a lack of competitiveness and growth potential, which can also reduce investor confidence.

Which of These Typically Lowers Investor Confidence and Forces International