Figure 6-2 Shows a Spending Flow Model Where Both Consumption

question 23

Multiple Choice

Figure 6-2 shows a spending flow model where both consumption and investment goods are being produced. Use the figure to answer questions .
Figure 6-2
-Refer to Figure 6-2. Washington State purchases four airplanes from Boeing. This expenditure falls under the:

• A) gross private investment category and the flow is represented by 2.
• B) government purchases category and the flow is represented by 2.
• C) gross private investment category and the flow is represented by 3.
• D) government purchases category and the flow is represented by 3.