The Four Components of Planned Aggregate Expenditure Are

question 138

Multiple Choice

The four components of planned aggregate expenditure are:

• A)spending on domestic goods, domestic services, foreign goods, and foreign services.
• B)spending on durable goods, inventory investment, government debt, and net exports.
• C)consumption, planned investment, government transfers, and net interest.
• D)consumption, planned investment, government purchases, and net exports.

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Definitions:

Optimal Initial Cash Balance

The ideal amount of cash that a company should hold at the start of a period to efficiently meet its operational needs and investment opportunities, while minimizing holding and shortage costs.

Transferring Funds

Transferring funds involves moving money from one account to another, either within the same financial institution or across different institutions.

Optimal Initial Cash Balance

The ideal amount of money a business should hold at the start to minimize costs while avoiding liquidity issues.

Cash Outflow

The movement of money out of a business or financial account, typically as payment for expenses, assets, or liabilities.