Question

Decisions about saving and investment are A. generally made under conditions of complete certainty about the future. B. complicated by the fact that the future is uncertain. C. unaffected by expectations of the future. D. independent of expectations about the future.

Answer 1

Answer:

The correct answer is b) complicated by the fact that the future is uncertain.

Explanation:

Two of the basic principles of economic theory are 1) the assumption that individuals (consumers and producers) are rational decision makers and aim to maximize their benefit and 2) the fact that expectations about the future influence decisions.

Given these two assumptions, and given the fact that the future is uncertain, decisions about investment are always influenced by expectations about probable outcomes in the future in a scenario of uncertainty.

Answer 2

Answer:B. complicated by the fact that the future is uncertain.

Explanation:

The economy of the state changes every now and then eventhough we want to sustain our future but we are never sure if these investments would truly sustain us or they may go down if the economy crashes .

We don't know if those companies where we do our investments will last until the future where we can get our money and be able to use it.

Anything can change in the future and affect the overall status of our Investments.