Which is most sensitive to concerns about the future growth of the economy?
A) Spending on food.
B) Spending on rent.
C) Spending on durable goods.
D) Spending of fuel.

Question

Quizplus · Accepted Answer

Spending on durable goods, such as cars or appliances, is most sensitive to concerns about future growth of the economy. Durable goods are typically large purchases that households may delay or put off altogether if they are uncertain about their future economic prospects. Spending on necessities like food and rent, as well as fuel, may be more resistant to changes in the economy as they are essential for daily living.

Which Is Most Sensitive to Concerns About the Future Growth