Which of the Following Statements About Consumption and Investment Is

question 39

Multiple Choice

Which of the following statements about consumption and investment is correct?

• A) A temporary change in income will have a relatively larger effect on consumption than on investment.
• B) A permanent change in income will have a relatively larger effect on consumption than on investment.
• C) Consumption is more volatile than investment.
• D) Investment and consumption exhibit approximately the same degree of volatility.
• E) Investment is more volatile than consumption.

---

Definitions:

Vitamin K

is a fat-soluble vitamin essential for blood clotting and bone metabolism.

Foot Printing

The practice of taking an inked impression of a newborn's foot, used for identification purposes and as a keepsake.

Placenta

The placenta is an organ that develops in the uterus during pregnancy, providing oxygen and nutrients to the growing fetus while removing waste products.

Fetal Membranes

The membranes, including the amnion and chorion, that surround and protect the fetus during development in the uterus.