Consumer spending ________ and investment spending ________.
A) follows a smooth trend; is the most stable component of aggregate expenditure
B) is very volatile and subject to fluctuations; follows a smooth trend
C) follows a smooth trend; is more volatile and subject to fluctuations
D) is very erratic; is also erratic, but less erratic than consumer spending
Question 2
Which of the following is not one of the key services provided by the financial system?
A) risk sharing B) liquidity
C) decreasing taxes D) generating information