Which of the following is true?
A) Investment growth tends to be high when GDP growth is low.
B) Investment growth tends to be high when consumption growth is high.
C) Consumption growth tends to be high when GDP growth is low.
D) Unemployment growth tends to be high when GDP growth is high.

Question

Quizplus · Accepted Answer

Investment growth tends to be high when consumption growth is high because when consumers are confident in the economy and their financial situation, they tend to spend more, which increases demand for goods and services. This, in turn, encourages businesses to invest in production and expansion to meet the increased demand.

Which of the Following Is True