The smallest component of physical investment is:
A) nonresidential fixed investment.
B) software.
C) residential investment.
D) changes in inventory.
E) unplanned investment.

Question

Quizplus · Accepted Answer

Changes in inventory are typically the smallest component of physical investment, as they represent the short-term fluctuations in the stock of goods that businesses hold, which can be quite small compared to fixed investments in buildings, machinery, or software, and residential investments in housing.

The Smallest Component of Physical Investment Is