Real investment tends to be
A) procyclical and less variable than real GDP.
B) procyclical and more variable than real GDP.
C) countercyclical and less variable than real GDP.
D) countercyclical and more variable than real GDP.
E) acyclical with real GDP.

Question

Quizplus · Accepted Answer

Real investment is procyclical, meaning it tends to increase during economic expansions and decrease during recessions, and it is more variable than real GDP due to its sensitivity to economic conditions and interest rates.

Real Investment Tends to Be