The most volatile component of aggregate expenditures is:
A) personal consumption.
B) investment demand.
C) government expenditure.
D) net exports.

Question

Quizplus · Accepted Answer

Investment demand is considered the most volatile component of aggregate expenditures as businesses tend to change their investment plans frequently in response to changes in economic conditions such as interest rates, economic growth, and consumer demand. Personal consumption, government expenditure, and net exports tend to be more stable in comparison.

The Most Volatile Component of Aggregate Expenditures Is