Investment spending is
A) a smaller share of GDP than consumption.
B) a larger share of GDP than consumption.
C) less volitile than consumption.
D) less volitile than GDP.
E) the share of stock prices to GDP.

Question

Quizplus · Accepted Answer

Investment spending is typically a smaller share of GDP than consumption. In the US, for example, investment spending makes up roughly 17-18% of GDP, while consumption makes up around 68-70% of GDP. This is because households spend far more than businesses on goods and services.

Investment Spending Is