Question

The behavior of consumption and investment over time can be described as​ follows: A. Consumption follows a​ smooth, upward​ trend, but investment is subject to significant fluctuations. B. Investment follows a​ smooth, upward​ trend, but consumption is subject to significant fluctuations. C. Neither consumption nor investment fluctuates significantly over time. D. Both consumption and investment fluctuate significantly over time

Answer 1

Answer: The behavior of consumption and investment over time can be described as​ follows:

D. Both consumption and investment fluctuate significantly over time.

Explanation: Consumption is something that fluctuate with respect to the person want and need at that particular time and also the demand and supply.

Investment is also subjected to fluctuation due to the imbalance of the economic system, growth or policy.