All Else Being Constant, Autonomous Expenditure

question 146

Multiple Choice

All else being constant, autonomous expenditure

• A) does not change with changes in real GDP.
• B) increases as real GDP decreases.
• C) increases as real GDP increases.
• D) is assumed to be zero.

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Definitions:

Floating Rate Bonds

Bonds that have variable interest rates, adjusting periodically in relation to an index or benchmark rate.

Interest Rates

The cost of borrowing money or the return for lending money, typically expressed as an annual percentage rate.

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date, including both interest payments and capital gains.

Annual Coupon

The annual interest payment made to bondholders, typically expressed as a percentage of the bond's face value.