Investment spending is a potent force in the macroeconomy,because ________.
A)it is subject to large fluctuations
B)it is larger than other spending categories
C)it is the focus of macroeconomic policies
D)it expresses entrepreneurial talent

Question

Quizplus · Accepted Answer

Investment spending is subject to large fluctuations because it is influenced by confidence, interest rates, and expectations about future profitability. These fluctuations can have significant impacts on the overall macroeconomy, such as changes in output, employment, and inflation.

Investment Spending Is a Potent Force in the Macroeconomy,because ________