Even Though Investment Spending Is a Smaller Part of Aggregate

question 24

Multiple Choice

Even though investment spending is a smaller part of aggregate demand than consumption, it is much more

• A)sluggish in movement or response.
• B)short run in nature.
• C)volatile.
• D)independent of business fluctuations.

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Definitions:

Agricultural Products

Items produced from farming and agriculture, including crops, livestock, and other consumable items.

Human Capital

The capabilities, insights, and expertise held by a person or a group of people, considered in relation to their worth or expense to a company or nation.

Comparative Advantage

The ability of a country, individual, company, or region to produce a good or service at a lower opportunity cost than competitors.

Technical Goods

Products designed with a specific technical or functional purpose, often requiring specialized knowledge to use.