Which of the following statements about consumption and investment is correct?
A)Consumption is more volatile than investment.
B)Investment and consumption exhibit approximately the same degree of volatility.
C)A permanent change in income will have a relatively larger effect on consumption than on investment.
D)none of the above

Question

Quizplus · Accepted Answer

Investment is generally more volatile than consumption, and a permanent change in income is likely to have a larger effect on investment than on consumption, making all the provided statements incorrect.

Which of the Following Statements About Consumption and Investment Is