Question

An increasing number of firms decide to install tablets and computers so that customers are able to order and pay on their own. This can be expected to ________ investment spending by the firms. At the same time we can expect the unemployment rate to ________ and consumption spending to ________. Overall the effect on gross domestic product (GDP) is ________.

Answer 1

Options:

a. have no effect on; increase; decrease; negative

b. increase; increase; decrease; negative

c. increase; increase; increase; positive

d. increase; increase; decrease; uncertain

e. decrease; increase; decrease; negative

Answer:

Option D is the correct answer.

An increasing number of firms decide to install tablets and computers so that customers are able to order and pay on their own. This can be expected to increase investment spending by the firms. At the same time we can expect the unemployment rate to increase and consumption spending to decrease. Overall the effect on gross domestic product (GDP) is uncertain.

Explanation:

Since, Firm choose to build venture by introducing tablets and PCs and hope to accomplish benefit level. And yet joblessness can be relied upon to increment and subsequently utilization spending will diminish. Thus, the general impact GDP is dubious in light of the fact that an underlying increment in venture increment the monetary development level by increment in work rate. On the off chance that business rate increment, at that point consequently utilization spending increment. And yet it was relied upon to expand joblessness rate which decline the utilization spending. Thus, all things considered GDP may increase or diminish . Consequently GDP is dubious.