Identify the correct statement
a. During a recession, investment decreases while consumption increases.
b. During a recession, investment increases while consumption decreases.
c. During a recession, investment is constant while consumption increases.
d. Annual variations in investment are larger than annual variations in consumption.
e. Annual variations in investment are smaller than annual variations in consumption.
d
You might also like to view...
If the interest rate is 7 percent on euro-denominated assets and 5 percent on dollar-denominated assets, and if the dollar is expected to appreciate at a 4 percent rate, the expected return on ________-denominated assets in ________ percent
A) dollar; euros is 3 B) euro; dollars is 1 C) dollar; euros is 1 D) euro; dollars is 3
Which of the following is likely to decrease the exchange rate of Yen to euros (¥/€)?
A) an increase in investment opportunities in the U.S. B) a decrease in investment opportunities in the eurozone C) a decrease in demand for European goods in Japan D) an increase in investment opportunities in the eurozone