Aggregate Private Spending Is Stable According to Non-Activists PRIMARILY Because

question 66

Multiple Choice

Aggregate private spending is stable according to non-activists PRIMARILY because

• A)consumer spending is insulated from changes in income according to the PIH and LCH theories.
• B)private residential and non-residential investment is volatile.
• C)government spending is volatile.
• D)the money supply is unstable.

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Definitions:

Consignment Shop

A retail store where people sell items and the owner of the shop gets a percentage of the sale price when the item is sold.

Noncumulative Preferred Stock

A type of preferred stock that does not entitle the shareholder to dividends that are omitted or not paid during any year.

Common Stock

A type of equity security that represents ownership in a corporation, giving shareholders the right to vote on corporate matters and receive dividends.

Dividend Payment

A distribution of a portion of a company's earnings to its shareholders, usually in the form of cash or stock.