Of the three major components of investment in the United States,
A) housing is a leading indicator of future changes in GDP, whereas business investment tends to move contemporaneously with output.
B) inventory behavior is a lagging indicator of changes in GDP, whereas housing tends to move contemporaneously with output.
C) inventory behavior tends to move contemporaneously with GDP, whereas business investment and housing serve as fundamental leading indicators of future changes in output.
D) only business investment is a leading indicator of future changes in GDP.
E) only inventories are volatile over the business cycle.
Correct Answer:
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Q5: Fixed investment in the United States
A) moves
Q6: Given a rental price for capital, the
Q7: Let the level of planned output decline
Q8: Of the three major components of investment,
A)
Q9: Investment is generally sensitive to changes in
Q11: For a firm choosing not to purchase
Q12: Let the wage rate climb. The marginal
Q13: Inventories in the United States
A) moved up
Q14: The conclusion that the firm makes use
Q15: Let the real rate of interest equal
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