The share of GDP available for nongovernment use is
A)negatively related to the nominal interest rate.
B)not dependent on the interest rate.
C)negatively related to the real interest rate.
D)positively related to the nominal interest rate.
E)positively related to the real interest rate.

Question

Quizplus · Accepted Answer

The share of GDP available for nongovernment use, also known as private sector output or private sector GDP, is not dependent on the interest rate. Private sector output is determined by factors such as technology, labor productivity, capital accumulation, and the availability of natural resources. The interest rate may affect investment and consumption decisions, but it does not directly determine the level of private sector output.

The Share of GDP Available for Nongovernment Use Is