The variability of business profits
A)helps explain the instability of investments over time.
B)does not affect investment spending, which depends on expected profits, not current profits.
C)explains why the durability of capital goods is variable.
D)causes the variations in consumption spending over time.

Question

Quizplus · Accepted Answer

Variability in business profits can lead to instability in investments because businesses may be less willing to invest during periods of low profits and more willing during high profits, affecting overall investment levels over time.

The Variability of Business Profits