One Reason for the Volatility of Investment Is That

question 15

Multiple Choice

One reason for the volatility of investment is that

• A) investment decisions can be postponed because of the durability of capital goods.
• B) motives for saving and investment are the same for businesses and households.
• C) firms maintain a constant rate of capacity utilization from year to year.
• D) wages and prices are flexible.
• E) consumer spending is erratic and unpredictable.

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Definitions:

Paris Commune

A radical socialist and revolutionary government that briefly ruled Paris from March to May 1871, following France's defeat in the Franco-Prussian War.

Opium War

A series of mid-19th century conflicts between the Qing Dynasty of China and the British Empire over trade imbalances and the illegal opium trade.

Labor Unions

Organizations that represent the collective interests of workers in negotiations with employers over wages, working conditions, and benefits, aimed at improving members' working lives.

Gilded Age

A period in the late 19th century characterized by rapid economic growth, widespread political corruption, and extravagant displays of wealth by America's upper class.