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

Question

Quizplus · Accepted Answer

Investment spending tends to be the most volatile component of aggregate demand because it is influenced by changes in interest rates, technological advances, and business confidence, which can rapidly shift and cause fluctuations in demand. Consumption spending, government spending, and net exports are typically less volatile components of aggregate demand.

The Most Volatile Component of Aggregate Demand Is