One important reason economists track business investment is that
A) it helps them decide which stocks to purchase.
B) it is a leading indicator of the business cycle.
C) business investment is an excellent proxy for government investment.
D) it shows where the economy has been.

Question

Quizplus · Accepted Answer

Business investment is a leading indicator of the business cycle, meaning it can help economists predict where the economy might be headed in the near future. By tracking business investment, economists can gain insights into the overall health and direction of the economy.

One Important Reason Economists Track Business Investment Is That