Real investment tends to follow a smooth upward path over time; however, consumption spending tends to fluctuate significantly according to consumer income levels and spending patterns.

Question

Quizplus · Accepted Answer

Real investment can also experience fluctuations due to changes in business conditions and economic factors. While consumption spending can be influenced by consumer income levels and spending patterns, there are also other factors such as consumer confidence and market conditions that can impact spending behavior.

Real Investment Tends to Follow a Smooth Upward Path Over