Changes in consumption and planned investment spending due to changes in the real interest rate alter:
A)the money supply.
B)money demand.
C)autonomous expenditures.
D)induced expenditures.

Question

Quizplus · Accepted Answer

Changes in the real interest rate affect autonomous expenditures, which are the components of aggregate spending that do not change with the level of income or output, such as investment spending.

Changes in Consumption and Planned Investment Spending Due to Changes