Asked by Isiwat Taiwo on Jun 15, 2024
Verified
Statement I.In dollar terms,I is currently about half the size of
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
Statement II.Investment is very unstable compared to other components of GDP.
C) Both statements are true.
D) Both statements are false.
Dollar Terms
Refers to the value of transactions, prices, or economic indicators denominated in the U.S. dollar.
Investment
Disbursing funds with the prospect of accruing income or profits.
GDP
Gross Domestic Product, the total market value of all final goods and services produced within a country in a specific period, a primary indicator of economic health.
- Ascertain the variables driving investment levels in an economic system.
- Grasp the concept of inventory investment and its volatility.
Verified Answer
RK
Reinhard KoechJun 19, 2024
Final Answer :
B
Explanation :
Explanation: Without specific data or context, it's impossible to verify the accuracy of Statement I regarding the size of "I" (presumably investment) in dollar terms. However, Statement II is generally true; investment is considered more volatile than other GDP components like consumption, due to its sensitivity to interest rates, business expectations, and economic conditions.
Learning Objectives
- Ascertain the variables driving investment levels in an economic system.
- Grasp the concept of inventory investment and its volatility.