Negative shocks tend to:
A) increase uncertainty.
B) decrease uncertainty.
C) have no impact on uncertainty.
D) first decrease and then increase uncertainty.

Question

Quizplus · Accepted Answer

Negative shocks, such as economic recessions or natural disasters, often lead to increased uncertainty due to the unexpected and disruptive nature of the event. They can make it hard to predict future outcomes and cause a lack of confidence in decision-making processes.

Negative Shocks Tend To