ObjectiveMcq
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In contrast to investment, consumption is:
Correct Answer: A — Relatively stable
Correct Answer: A
In macroeconomics, consumption is relatively stable compared to investment. Household consumption spending tends to change gradually with income and is influenced by stable factors such as income levels, savings habits, and consumer confidence. Investment, by contrast, is highly volatile — it fluctuates sharply with changes in interest rates, business expectations, and economic conditions.