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-Consider Figure 11

Question 2

Multiple Choice

-Consider Figure 11.1,which shows the growth rate of real investment and the real GDP.How does the investment function describe why investment is more volatile than the real GDP? A) Firms are unpredictable. B) differences in expectations across firms C) differences in expenditure shares. D) the inclusion of interest rates in the investment function E) none of the above
-Consider Figure 11.1,which shows the growth rate of real investment and the real GDP.How does the investment function describe why investment is more volatile than the real GDP?


A) Firms are unpredictable.
B) differences in expectations across firms
C) differences in expenditure shares.
D) the inclusion of interest rates in the investment function
E) none of the above

Correct Answer:

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