In a Private Closed Economy, Aggregate Expenditures Will Equal GDP

question 180

Multiple Choice

In a private closed economy, aggregate expenditures will equal GDP where:

• A)consumption equals investment.
• B)consumption plus investment equals aggregate expenditures.
• C)planned investment equals saving.
• D)disposable income equals consumption minus saving.

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Definitions:

Acquisition Transaction

A business operation in which one company purchases most or all of another company's shares to assume control.

Investment

The allocation of resources (such as capital, time, or effort) in the expectation of receiving future benefits or returns.

Credit Balance

The amount of money in a financial repository that surpasses the debit balance and is available for use.

Consolidated Goodwill

The excess value of purchase price over the fair market value of identifiable assets and liabilities acquired during consolidation.