Refer to the Following Figure When Answering

Multiple Choice

Refer to the following figure when answering
Figure 11.2: Growth Rates of Investment and GDP (Source: U.S. Bureau of Economic Analysis)
-Consider Figure 11.2. How does the investment function describe why investment is more volatile than the real GDP?

A) unpredictable firms
B) differences in expectations across firms
C) differences in expenditure shares
D) the inclusion of interest rates in the investment function
E) changes in business taxes