Angeeoluis Angeeoluis
  • 16-03-2022
  • Business
contestada

Why does investment vary more than consumption from year to year

Respuesta :

admarvel1961
admarvel1961 admarvel1961
  • 16-03-2022

Answer:

Investment is the most volatile variable followed by consumption

Explanation:

In fact, investment is a much smaller proportion of output than consumption, but because individuals try and smooth out their consumption levels over time, current investment reacts much more dramatically to changes in economic conditions than current consumption does.

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