One Reason Why Consumption Expenditure Is Less Volatile Than GDP

Multiple Choice

One reason why consumption expenditure is less volatile than GDP is that

A) personal disposable income is more volatile than GDP.
B) personal disposable income is less volatile than GDP.
C) the progressive income tax structure of the United States is too weak to generate higher and lower collections during booms and recessions, respectively.
D) retained corporate earnings increase during recessions because firms use the slow times to retool for the next upturn.
E) none of the above because the statement is false.