Inventory investment displays business cycle patterns that differ from other forms of expenditure because
A)inventory investment is countercyclical,but expenditures are generally procyclical.
B)inventory investment is procyclical,but expenditures are generally coincident with the business cycle.
C)inventory investment displays large fluctuations that are not associated with business cycle peaks and troughs.
D)inventory investment lags the business cycle,but expenditures generally lead the business cycle.

Question

Quizplus · Accepted Answer

Inventory investment tends to show large fluctuations that are not necessarily aligned with the peaks and troughs of the business cycle, making its patterns distinct from other expenditures.

Inventory Investment Displays Business Cycle Patterns That Differ from Other