How Does the Size of Investment as a Fraction of GDP

question 90

Multiple Choice

How does the size of investment as a fraction of GDP compare to its importance in creating economic fluctuations?

• A) Investment is a small part of real GDP, and it accounts for a small share of the fluctuation in real GDP.
• B) Investment is a small part of real GDP, yet it accounts for a large share of the fluctuation in real GDP.
• C) Investment is a large part of real GDP, and it accounts for a large share of the fluctuation in real GDP.
• D) Investment is a large part of real GDP, yet it accounts for a small share of the fluctuation in real GDP.

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Definitions:

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