Purchases of ________ are the most volatile type of expenditures because they are very sensitive to the interest rate, which is highly volatile.

Question

Quizplus · Accepted Answer

Purchases of new houses are the most volatile type of expenditures sensitive to interest rates because housing loans are directly affected by changes in interest rates, making the demand for new houses highly responsive to interest rate fluctuations.

Purchases of ________ Are the Most Volatile Type of Expenditures