In a Simple Macroeconomic Model, Only One Component of Expenditures

question 13

Multiple Choice

In a simple macroeconomic model, only one component of expenditures is allowed to change:

• A)investment.
• B)consumption.
• C)net exports.
• D)government spending.
• E)transfer payments.

---

Definitions:

Personal Purposes

Activities or objectives pursued for an individual’s own private, personal, or household reasons, as opposed to professional or business reasons.

Perfected Security Interest

A perfected security interest is a legal state where a creditor has completed all necessary steps to establish and maintain priority over other creditors concerning a debtor's asset.

Financing Statement

A document filed to give public notice of a security interest in property, used to perfect a secured creditor's interest in the collateral.

Payment Plan

An agreement to pay a debt in specified amounts over a set period.