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QUESTION IMAGE

if expectations were always met, then firms would never contribute to a…

Question

if expectations were always met, then firms would never contribute to any of the short - run fluctuations in employment and output that are observed in real - world economies.
true
false
question 9
2 pts
the amount of investment is ultimately limited by the amount of
saving.
production.
employment.
inflation.

Explanation:

Brief Explanations

In economic theory, investment is funded by savings. Firms rely on savings (from households, etc.) to finance investment projects. If there were no savings, there would be no funds available for investment. Production, employment, and inflation do not directly limit investment in the fundamental way that savings do. Savings provide the pool of funds that can be channeled into investment.

Answer:

saving.