________ investment is more volatile than other forms of investment spending because this type of investment can be changed relatively quickly.

Question

Quizplus · Accepted Answer

Inventory investment refers to the production of goods that are not yet sold, and can be changed relatively quickly in response to changes in demand or other market conditions. This makes it more volatile than other forms of investment spending, such as business fixed investment or residential investment, which tend to be more stable in the short term. Capital investment, which refers to spending on long-term physical assets, can also be volatile but is typically more closely tied to long-term economic trends and may therefore be less responsive to short-term market fluctuations.

________ Investment Is More Volatile Than Other Forms of Investment