The Housing Boom That Took Place During the First Half

Multiple Choice

The housing boom that took place during the first half of the 2000s best illustrates how

A) investment spending by households is insensitive to changes in the real interest rate.
B) fixed investment spending by businesses is sensitive to changes in the real rate of interest.
C) investment spending by households is sensitive to changes in the real rate of interest.
D) consumption expenditures are sensitive to changes in the real rate of interest.
E) fixed investment spending by businesses is insensitive to changes in the real rate of interest.