From year to year, consumption fluctuates more than gross private domestic investment.

Name: From year to year, consumption fluctuates more than gross private domestic investment.
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Question

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Gross private domestic investment typically fluctuates more than consumption from year to year because investment is more sensitive to interest rates, business expectations, and economic conditions, leading to greater volatility compared to the relatively stable consumption patterns driven by household spending.

From Year to Year, Consumption Fluctuates More Than Gross Private