Question

Real investment spending for the past 35 years is less volatile than real personal consumption.

a. True
b. False

Answer 1

Real investment spending for the past 35 years is not less volatile than real personal consumption.

Step-by-step explanation:

In the context of economics, the statement that real investment spending for the past 35 years is less volatile than real personal consumption is False.

Real personal consumption refers to the spending by individuals on goods and services, while real investment spending refers to the spending by businesses on capital goods and infrastructure. Historically, investment spending tends to be more volatile than personal consumption as it is influenced by economic conditions, business cycles, and investment decisions.