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From course:

Economics A Level (DONEEEEEEE)

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Question:

How can Business Confidence, and ‘Animal Spirts’ [Define] affect Investment

Author: eric_galvao



Answer:

-If a Firm is Confident it will get Profits, then it will Invest -Business Confidence is dependent of the Company’s Mangers, as Keynes pointed out that not All Investment is done on Rational Thinking, but that Emotions and Gut Feeligns are also involved - These are your Animal Spirts


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