Multiple Choice
Which of the following statements of the expected flow of future benefits is false?
A) Firms must rely on forecasts of expected future benefits to make sensible investment decisions.
B) Households, business firms, and governments all evaluate the expected flow of benefits when making investment decisions.
C) If future benefits are overestimated by the firm, the firm will under invest in capital.
D) If future benefits are underestimated by the firm, the firm will under invest in capital.
Correct Answer:
Verified
Correct Answer:
Verified
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