Changes in the real interest rate affect all of the following components of aggregate expenditure,except
A) consumption.
B) investment.
C) government purchases.
D) net exports.

Name: Changes in the real interest rate affect all of the following components of aggregate expenditure,except A) consumption. B) investment. C) government purchases. D) net exports.
Brand: Quizplus
Rating: 4.9 (34 reviews)

Question

Quizplus · Accepted Answer

Government purchases are typically determined by fiscal policy decisions and are not directly affected by changes in the real interest rate.

Changes in the Real Interest Rate Affect All of the Following