Multiple Choice Question

Unlike consumption spending, investment spending is Blank______.
Multiple choice question.

stable and independent of change in total income

stable and dependent on changes in total income

volatile and independent of changes in total income

volatile and dependent on changes in total income

1 answer

The correct answer is:

volatile and dependent on changes in total income.

Investment spending tends to be more volatile compared to consumption spending and often responds to changes in economic conditions and total income.