Increased optimism about the future will lead to:
A) Less current investment and less future consumption
B) More current investment and more future consumption
C) More current investment and less future consumption
D) Less current investment and more future consumption

Question

Quizplus · Accepted Answer

Increased optimism about the future typically leads to an increase in current investment as individuals and businesses are more willing to take risks and spend money to pursue future opportunities. This increase in investment can also lead to increased productivity and economic growth, which can result in higher future consumption levels. Therefore, the combination of more current investment and more future consumption is the most likely outcome.

Increased Optimism About the Future Will Lead To