If a company's earnings do not vary much with the economy, it would be called a ____ stock.

A stock that is categorized as defensive refers to shares in a company whose earnings and overall performance are relatively stable and consistent, regardless of the economic conditions. These companies typically provide essential products or services that consumers continue to purchase even during economic downturns.

Defensive stocks are generally less sensitive to the fluctuations of the economic cycle, making them a safer investment during periods of uncertainty. Investors often look to these stocks in times of market volatility as a means of preserving capital and achieving steady, if modest, returns.

In contrast, growth stocks represent companies expected to grow at an above-average rate compared to others, which often correlates with higher volatility. Speculative stocks are typically associated with higher risk and the potential for substantial price swings, often related to unproven ventures. Cyclical stocks, on the other hand, are heavily influenced by economic cycles, reflecting greater volatility and sensitivity to economic manifestations. Therefore, the classification of a stock as defensive is appropriate based on its stability and independence from the economic fluctuations.