Induced expenditure is any expenditure that
A)changes when real GDP changes.
B)is fixed for all levels of real GDP.
C)is fixed for all price levels.
D)is fixed for all levels of the interest rate.
E)changes when the interest rate changes.

Question

Quizplus · Accepted Answer

Induced expenditure refers to the expenditure that changes as real GDP changes. This includes consumption expenditure, investment expenditure, and government expenditure. As real GDP increases, consumption and investment generally increase, leading to an overall increase in induced expenditure.

Induced Expenditure Is Any Expenditure That