Which of the following factors does not help explain the instability of investment?
A)Business expectations can quickly change for unpredictable reasons.
B)Innovations in the economy occur quite irregularly.
C)Profits of firms are highly variable from one period to the next.
D)Purchases of capital goods are usually nondiscretionary and cannot be postponed.

Question

Quizplus · Accepted Answer

Purchases of capital goods are often discretionary and can be postponed, which contributes to the instability of investment.

Which of the Following Factors Does Not Help Explain the Instability