The data for Australia show that investment and profits:
A) have a clear positive relationship.
B) are positively related during recessions, and negatively related during expansions.
C) are positively related during expansions, and negatively related during recessions.
D) have a strong negative relationship.
E) move independently.

Question

Quizplus · Accepted Answer

Investment and profits typically have a clear positive relationship because as profits increase, businesses have more capital to invest in growth, and as investment leads to growth, it can further increase profits. This relationship is generally observed across various economies, including Australia.

The Data for Australia Show That Investment and Profits