________ spending follows a smooth trend whereas,________ spending is more volatile and subject to fluctuations.
A)Consumption; government
B)Consumption; investment
C)Investment; consumer
D)Government; consumer

Question

Quizplus · Accepted Answer

Consumption spending, which refers to the spending by households on goods and services, tends to follow a smoother trend over time because it is driven primarily by long-term factors such as income and population growth. On the other hand, investment spending, which refers to the spending by businesses on physical capital such as machinery and buildings, is more volatile and subject to fluctuations as it is influenced by more short-term factors such as interest rates and business confidence. Therefore, choice B, consumption and investment spending, best fits the description provided in the question.

________ Spending Follows a Smooth Trend Whereas,________ Spending Is More

Spending Follows a Smooth Trend Whereas, Spending Is More