Investment will be more variable if
A) there is variablility in z'' that shifts the investment schedule over time.
B) there is variablility in z'' that causes movements along the investment schedule over time.
C) there is variablility in r that shifts the investment schedule over time.
D) the real interest rate remains below the return on stocks.
E) stock prices remain sufficiently volitile.

Question

Quizplus · Accepted Answer

Variability in z'' that shifts the investment schedule over time will cause investment to be more variable because it changes the conditions under which investment decisions are made, leading to fluctuations in investment levels.

Investment Will Be More Variable If