Fluctuations in investment:
A)account for almost all of the variability in gross domestic product (GDP)only during expansions.
B)account for little of the variability in gross domestic product (GDP).
C)account for almost all of the variability in gross domestic product (GDP)only during recessions.
D)are larger during expansions than during recessions.
E)account for more of the variability in gross domestic product (GDP)than consumption.

Question

Quizplus · Accepted Answer

Investment is more volatile than consumption and tends to account for a larger share of GDP variability.

Fluctuations in Investment