Fluctuations in Investment

question 10

Multiple Choice

Fluctuations in investment:

• A)account for almost all of the variability in gross domestic product (GDP)only during expansions.
• B)account for little of the variability in gross domestic product (GDP).
• C)account for almost all of the variability in gross domestic product (GDP)only during recessions.
• D)are larger during expansions than during recessions.
• E)account for more of the variability in gross domestic product (GDP)than consumption.

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Definitions:

Distinctiveness

The quality of being distinctly different or unique, often used in the context of individual or group identity and characteristics.

Consistency

The quality of achieving a level of performance or behavior that does not vary greatly in quality over time.

Dispositional Explanations

Attributions of behavior to stable internal factors, including personality traits and beliefs.

Circumstances

The conditions or facts affecting a specific event, decision, or action.