The most volatile component of aggregate demand is
A)consumer spending.
B)government purchases.
C)net exports.
D)investment spending.

Question

Quizplus · Accepted Answer

Investment spending is the most volatile component of aggregate demand as it is heavily influenced by business expectations and is subject to fluctuations based on factors such as interest rates, technological advances, and consumer demand. Consumer spending, government purchases, and net exports are generally less volatile as they are influenced by more stable factors such as income levels, government policies, and global economic conditions.

The Most Volatile Component of Aggregate Demand Is