Fluctuations in investment
A)account for almost all of the variability in GDP during expansions
B)account for almost all of the variability in GDP
C)account for almost all of the variability in GDP during recessions
D)are larger during expansions than during recessions
E)account for more of the variability in GDP than consumption does

Question

Quizplus · Accepted Answer

Investment is more volatile than consumption and tends to account for more of the variability in GDP, as consumption is generally more stable over time.

Fluctuations in Investment