DO NOT EXPLAIN, JUST TYPE THE LETTER

1.If investors are less certain about the economic outlook, they will:

Select one:

a.

reduce capital investments that are less irreversible.

b.

reduce capital investments that are more irreversible.

c.

raise capital investments that are less irreversible.

d.

raise capital investments that are more irreversible.

2.A negative shock reduces capital investments because:

Select one:

a.

capital investments involve sunk costs.

b.

investments are always very speculative.

c.

capital investments are easily reversible.

d.

investors react only to capital investments that bring high returns.