Which Component of Aggregate Expenditures Is the Least Sensitive to Changes

question 19

Multiple Choice

Which component of aggregate expenditures is the least sensitive to changes in the real interest rate?

• A) Investment
• B) Consumption
• C) Net exports
• D) Government purchases

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Definitions:

Pain Tolerance

is the maximum level of pain an individual can endure or tolerate before it becomes unbearable.

Distraction

A factor or event that diverts attention away from a desired focus, often resulting in decreased performance or concentration.

Effective

Producing a decided, decisive, or desired effect; efficient in producing a desired outcome.

Expectation

Beliefs or forecasts about future events or outcomes, often based on experience, knowledge, or hypothetical scenarios.