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Why Is Investment Demand More Unstable Than Personal Consumption

Question 50

Multiple Choice

Why is investment demand more unstable than personal consumption?


A) Because business decisions are often made based on the expectations, and moods of optimism and pessimism concerning future economic conditions.
B) Because business decisions are often made based only on interest rates.
C) Because business decisions are made more often than personal purchasing decisions.
D) Because personal purchasing decisions are often made based on the forecasts of future sales.

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