Which of the following is true of investment spending in the U.S. economy?
A)Investment spending in 2009 was higher than in 2006.
B)Investment spending was almost double of household spending.
C)Businesses had reduced expenditures on capital goods in 2008 and 2009.
D)Investment spending exhibited a more or less steady increase between 1959 and 2009.
E)Investment spending fluctuated relatively less than consumption.

Question

Quizplus · Accepted Answer

The passage states that "businesses had reduced expenditures on capital goods in 2008 and 2009." This indicates a decrease in investment spending during this period, making option C the correct choice. Options A, B, and D are all incorrect as they make statements that are contradicted by the information provided. Option E cannot be determined from the information given.

Which of the Following Is True of Investment Spending in the U.S