The most volatile component of total investment spending is ________.

Question

Quizplus · Accepted Answer

Inventory adjustment is the most volatile component of total investment spending. This is because it involves changes in businesses' planned investment spending in response to unexpected changes in demand for their products, which can fluctuate significantly in the short-term. The other options listed are also important components of investment spending, but are generally less volatile than inventory adjustment.

The Most Volatile Component of Total Investment Spending Is ________