8. Investments by firms are volatile because (choose the correct answer): A. Firms make investment decisions based on how much they hate their competitors. B. Expectations about future demand do not impact their decisions. C. They prefer to smooth their investment decisions D. Firms may be credit constrained. 9. Which statement is correct about co-insurance as a household strategy against shocks? A. It is based on altruism and trust. B. It does not involve other households C. It works best when everyone is impacted by the shock. D. It is not co-insurance if your extended family is involved. 10. Which of the following would increase GDP? A. An increase in imports, holding all other components of GDP constant. B. An increase in remittances paid by South African residents to their relatives living abroad. C. An increase in government spending. D. iv. A decline in exports