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    Macroeconomics Study Set 17
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    Exam 12: Aggregate Expenditure and Output in the Short Run
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    If Firms Are More Optimistic That Future Profits Will Rise
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If Firms Are More Optimistic That Future Profits Will Rise

Question 250

Question 250

Multiple Choice

If firms are more optimistic that future profits will rise and remain strong for the next few years,then


A) investment spending will fall.
B) investment spending will rise.
C) investment spending will remain unaffected.
D) investment spending will rise and then fall.

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