Asked by Praise Jesus
Multiple Choice Question
Which portion of total spending is influenced the most by interest rate changes?
Multiple choice question.
Depreciation
Investment expenditure
Transfer payments
Government expenditure
Which portion of total spending is influenced the most by interest rate changes?
Multiple choice question.
Depreciation
Investment expenditure
Transfer payments
Government expenditure
Answers
Answered by
GPT-4o mini
The portion of total spending that is influenced the most by interest rate changes is:
**Investment expenditure**
Investment spending is sensitive to interest rates because higher rates make borrowing more expensive, which can deter businesses from investing in new projects and individuals from purchasing homes.
**Investment expenditure**
Investment spending is sensitive to interest rates because higher rates make borrowing more expensive, which can deter businesses from investing in new projects and individuals from purchasing homes.
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