Between 2006 and 2010, the Component of Investment That Fell

question 91

Multiple Choice

Between 2006 and 2010, the component of investment that fell the furthest was:

• A) software.
• B) residential investment.
• C) changes in inventory.
• D) nonresidential fixed investment.
• E) unplanned investment.

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Definitions:

Period

A span of time during which certain events or conditions exist or take place, often used in reference to financial reporting, investment intervals, or cycles.

Cross Hedging

The practice of hedging risk by using a contract that is correlated with, but not identical to, the actual underlying asset or liability.

Commodity

A basic good used in commerce that is interchangeable with other goods of the same type, often traded on futures exchanges.

Futures Contract

A contract to purchase or sell a specified commodity or financial instrument at an agreed-upon price at a future date.