Which share is not sensitive to changes in the real interest rate?
A)All four shares are sensitive to changes in the real interest rate.
B)Consumption
C)Investment
D)Government purchases
E)Net exports

Question

Quizplus · Accepted Answer

Government purchases are typically policy-driven and not directly sensitive to changes in the real interest rate, unlike consumption, investment, and net exports, which are more directly influenced by changes in borrowing costs and economic conditions.

Which Share Is Not Sensitive to Changes in the Real