The most volatile component of total investment spending is ________.
A)construction spending by firms
B)spending by firms on equipment
C)residential construction by households
D)inventory investment

Question

Quizplus · Accepted Answer

Inventory investment is the most volatile component of total investment spending because it can quickly fluctuate based on changes in consumer demand or unexpected supply chain issues. Construction spending by firms, spending by firms on equipment, and residential construction by households are also important components of investment spending, but they tend to be more stable over time.

The Most Volatile Component of Total Investment Spending Is ________