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.

Question

Quizplus · Accepted Answer

Decisions about saving and investment are complicated by the fact that the future is uncertain. People make saving and investment decisions based on their expectations about the future, but these expectations are often incorrect or unreliable. Therefore, saving and investment decisions involve a degree of risk and uncertainty.

Decisions About Saving and Investment Are