Of All of the Components of Aggregate Demand, the Most

question 56

Multiple Choice

Of all of the components of aggregate demand, the most interest sensitive is:

• A) investment.
• B) government purchases.
• C) consumption.
• D) net exports.

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Definitions:

Depressant

A drug that lowers the rate of activity of the nervous system.

Stage 1 Sleep

The initial phase of sleep that is light and easily disrupted, serving as a transition from wakefulness to deeper sleep stages.

Rapid Eye Movement

A phase of sleep characterized by the random movement of the eyes, dreaming, and increased brain activity.