As the Economy Becomes More and More Depressed,a Company's Management

Multiple Choice

As the economy becomes more and more depressed,a company's management decides to slash spending on research and development.What is the likely effect of this action on net income? Net income will be

A) higher this period and lower in future periods.
B) higher this period and higher in future periods.
C) lower this period and higher in future periods.
D) lower this period and lower in future periods.