Investment spending in the United States tends to be unstable because
A) proﬁts are highly variable.
B) the price level ﬂuctuates rapidly.
C) investment spending is affected by interest rates.
D) capital wears out quickly and must be replaced often.

Question

Quizplus · Accepted Answer

Investment spending is unstable because profits, which are a major source of funds for investment, can vary significantly due to economic conditions, affecting the ability and willingness of businesses to invest.

Investment Spending in the United States Tends to Be Unstable