In comparison with the consumption schedule, the investment schedule is:
A)relatively stable.
B)relatively unstable.
C)upsloping.
D)independent of the price level.

Question

Quizplus · Accepted Answer

The investment schedule is relatively unstable because it is affected by many factors such as interest rates, business expectations, and technological advancements, which can change quickly and unpredictably. In contrast, the consumption schedule is more stable as it is driven by more consistent factors such as income and preferences.

In Comparison with the Consumption Schedule, the Investment Schedule Is