AS THE ECONOMY BECOMES MORE AND MORE DEPRESSED, A COMPANY'S MANAGE...

97. As the economy becomes more and more depressed, a company's management decides to

slash spending on research and development. What is the likely effect of this action on net

income? Net income will be

a. higher this period and lower in future periods.

b. higher this period and higher in future periods.

c. lower this period and higher in future periods.

d. lower this period and lower in future periods.