What if firms expected future returns to be very high

Reference no: EM131244056

1. How does investment as defined by economists differ from investment as defined by the general public? What would happen to the amount of investment made today if firms expected the future returns to such investment to be very low? What if firms expected future returns to be very high?

2. Why, in general, do shocks force people to make changes? Give at least two examples from your own experience.

Reference no: EM131244056

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