Which of the following is least likely to contribute to the volatility of investment spending?
A)Expectations about business conditions
B)Changes in government spending
C)Changes in tax laws
D)Changes in capacity utilization
E)Interest rate fluctuations

Question

Quizplus · Accepted Answer

Changes in government spending directly affect fiscal policy and aggregate demand, but they are less likely to cause volatility in investment spending compared to factors like interest rates or business expectations.

Which of the Following Is Least Likely to Contribute to the Volatility