Daily Vocab Capsule 5th October 2017 Daily English Vocab In Need of a Psycho-Economic Boost When a person decides to buy a flat, it reflects his or her optimism about the future. There is confidence that one will have enough income flowing in, to pay for the monthly instalments. This optimism is not because of job security, but because of the belief that one will get a new job, even if one becomes unemployed. The same is true for an entrepreneur setting up a new factory or new business. It’s called risk taking, but that is not to imply reckless gambling. It reflects the investor’s confidence about the future returns on the investment. If that confidence starts to wane (become weaker.), then potential home buyers refrain or postpone their decisions. Investors adopt a wait-and-watch attitude. If everyone in the economy starts becoming extra-cautious, the decline in confidence and economic activity becomes self-fulfilling. As the economy slows down, people say, “See I told
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