-Consider Figure 11

question 2

Multiple Choice

-Consider Figure 11.1,which shows the growth rate of real investment and the real GDP.How does the investment function describe why investment is more volatile than the real GDP?

• A)Firms are unpredictable.
• B)differences in expectations across firms
• C)differences in expenditure shares.
• D)the inclusion of interest rates in the investment function
• E)none of the above

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