Recall the Application About Energy Price Uncertainty and Its Impact

Multiple Choice

Recall the Application about energy price uncertainty and its impact on investment spending and GDP growth to answer the following question(s) . Increases in oil prices can lead to a drop in GDP. However, uncertainty about oil prices is also an important factor. The volatility of oil prices creates uncertainty for firms making investment decisions, and adversely affects GDP growth.
-This application addresses the idea that

A) financial intermediaries facilitate investment spending.
B) government spending is needed to pull an economy out of a recession.
C) investment spending is the least stable component of GDP.
D) consumer spending is the most stable component of GDP.