Each of the following is a source of fluctuations in investment spending except
A) the real interest rate r.
B) changes in investors' expectations about future output growth.
C) changes in households' expectations about future risk.
D) changes in investors' expectations about future profits.

Question

Quizplus · Accepted Answer

Changes in households' expectations about future risk primarily affect consumption rather than investment spending. Investment spending is more directly influenced by factors such as the real interest rate, expectations about future output growth, and expectations about future profits.

Each of the Following Is a Source of Fluctuations in Investment