Why do you think that investment is more variable over the business cycle than consumer spending? Which
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Why do you think that investment is more variable over the business cycle than consumer spending? Which category of consumer spending do you think would be most volatile: durable goods (such as furniture and car purchases), nondurable goods (such as food and clothing) or services (such as haircuts and medical care)? Why?
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The greater variability of investment compared to consumer spending over the business cycle can be attributed to several factors Capital Intensity Inv...View the full answer
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