Investment spending is
A)much more volatile than consumption spending.
B)equally volatile as GDP.
C)less volatile than consumption spending.
D)a larger fraction of GDP than consumption is.
E)equally as volatile as government spending.

Question

Quizplus · Accepted Answer

Investment spending is more volatile than consumption spending as it is highly dependent on business confidence and future expectations. Consumption spending is more stable as it is based on the current income and needs of households.

Investment Spending Is