The Irregularity of the Innovation Rate

Multiple Choice

The irregularity of the innovation rate

A) primarily affects the levels of household spending and saving.
B) helps explain why gross investment expenditure tends to be unstable.
C) causes average real wages to tend toward subsistence levels.
D) is a major reason behind the classical economists' belief that interest rates are inflexible.
E) is increased when the value of the multiplier is less than 1.