Which of the Following Is Probably the Least Sensitive to Changes

question 143

Multiple Choice

Which of the following is probably the least sensitive to changes in real interest rates?

• A)Consumption expenditures
• B)Gross investment
• C)Net exports
• D)Residential investment
• E)Net investment

---

Definitions:

Overtime Cost

The additional expense incurred by employers for work performed by employees beyond their normal working hours, often at a higher pay rate.

Holding Costs

The expenses associated with storing unsold goods or materials, including warehousing, security, and insurance costs.

Aggregate Plan

A production planning strategy that determines the necessary resource capacity to meet expected demand over an intermediate time frame, typically ranging from a few months to a year.

Back Orders

Orders for goods or services that cannot be filled at the current time due to lack of supply.