Induced expenditure is any expenditure that
A)is fixed for all levels of the interest rate.
B)changes when real GDP changes.
C)is fixed for all levels of real GDP.
D)is fixed for all price levels.
E)changes when the interest rate changes.

Question

Quizplus · Accepted Answer

Induced expenditure changes when real GDP changes because it is the part of aggregate expenditure that is directly related to the level of economic activity.

Induced Expenditure Is Any Expenditure That