The least stable component of total spending is:
A) investment spending.
B) personal consumption expenditures.
C) government purchases of goods and services.
D) household purchases of food and medical services.

Question

Quizplus · Accepted Answer

Investment spending is considered the least stable component of total spending because it is highly sensitive to interest rates and economic expectations. It can fluctuate significantly in response to changes in business confidence and economic conditions, unlike personal consumption, government purchases, and household necessities, which tend to be more stable.

The Least Stable Component of Total Spending Is