Based on historical data, which of the following tended to be most variable over time?
A)real consumption spending
B)real saving
C)real investment spending
D)the average propensity to consume

Question

Quizplus · Accepted Answer

Real investment spending tends to be the most variable over time because it is heavily influenced by changes in the business cycle and economic conditions. Investment decisions are often based on expectations of future profitability, which can be affected by unpredictable factors such as technological advancements, changes in government policies, and shifts in consumer demand. On the other hand, real consumption spending and real savings tend to be more stable and predictable. The average propensity to consume, while related to consumption spending, is a measure of the proportion of income that is spent rather than saved, and is not directly subject to fluctuations in economic conditions.

Based on Historical Data, Which of the Following Tended to Be