Answer to Question #70610 in Macroeconomics for Siddharth

Question #70610
What is interest sensitivity of money supply and how would you treat it algebraically ?
1
Expert's answer
2017-10-17T15:59:07-0400
Interest rate sensitivity is a measure of how much the price of a fixed-income asset will fluctuate as a result of changes in the interest rate environment. Securities that are more sensitive have greater price fluctuations than those with less sensitivity.

Reference:
http://www.investopedia.com/terms/i/interest-rate-sensitivity.asp#ixzz4vn4LO7t2

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