Multiple Choice
The following factors help explain the instability of investment, except:
A) Business expectations can quickly change for unpredictable reasons
B) Innovations in the economy occur quite irregularly
C) Profits of firms are highly variable from one period to the next
D) Purchases of capital goods are usually nondiscretionary and cannot be postponed
Correct Answer:

Verified
Correct Answer:
Verified
Q1: If the MPC is 0.8, what change
Q23: Which factor explains the variability of investment?<br>A)
Q24: The saving schedule would be shifted upward
Q29: If businesses feel more optimistic about the
Q34: If the real rate of interest increases,
Q71: Which statement about the multiplier is correct?<br>A)If
Q86: If households see the value of their
Q93: If a $100 billion increase in consumption
Q169: The average propensity to save is equal
Q201: The lower the marginal propensity to consume,