Which of the following statements about investment spending is false?
A)It is much more volatile than consumption spending.
B)The percentage swings in real investment spending are greater than the percentage swings in real GDP.
C)The durability of capital goods is one basic reason for the variability of investment spending.
D)During the Great Recession in 2007-2009, when interest rates essentially declined to zero, investment spending rose sharply.

Question

Quizplus · Accepted Answer

During the Great Recession, despite low interest rates, investment spending did not rise sharply due to economic uncertainty and other factors affecting business confidence.

Which of the Following Statements About Investment Spending Is False