Question: Select all that apply From the following list, select all the options that help explain why expectations often extend an economic contraction. Multiple select question.

Select all that apply From the following list, select all the options that help explain why expectations often extend an economic contraction. Multiple select question. Domestic consumers spend less due to the expectation of lower incomes. Foreign buyers spend less given that they are often experiencing similar expectations of lower incomes. Businesses spend less on capital goods due to the expectation of lower sales and profits. Governments often spend less during a contraction than they do during an expansion

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!