Based on historical data, which of the following tended to be most unstable over time?
A) real consumption spending
B) real saving
C) real investment spending
D) the average propensity to save

Question

Quizplus · Accepted Answer

Historical data has shown that real investment spending is the most unstable over time, as it is heavily influenced by factors such as technological innovation, changes in government policies, and shifts in market conditions. Real consumption spending and real saving tend to be more stable, as they are driven by more consistent factors such as income and demographics. The average propensity to save is a measure of individual behavior and is unlikely to be a major source of instability in the economy.

Based on Historical Data, Which of the Following Tended to Be