The most volatile spending component of GDP in the United States is:
A) consumption.
B) investment.
C) government spending.
D) net exports.

Question

Quizplus · Accepted Answer

Investment spending tends to be the most volatile component of GDP as it fluctuates greatly based on business cycles, changes in interest rates, and shifts in investor confidence. Consumption spending, on the other hand, tends to be more stable as it is driven by factors such as income and demographics. Government spending and net exports also tend to be less volatile as they are often influenced by policy decisions and global economic conditions.

The Most Volatile Spending Component of GDP in the United