The Following Are National Income Account Data for a Hypothetical

question 76

Multiple Choice

The following are national income account data for a hypothetical economy in billions of dollars: government purchases ($1,050) , personal consumption expenditures ($4,800) , imports ($370) , exports ($240) , and gross private domestic investment ($1,130) .Personal consumption expenditures are approximately what percentage of this economy?

• A)60 percent
• B)65 percent
• C)70 percent
• D)75 percent

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Definitions:

Money Supply

The collective amount of cash, coins, and checking and savings account balances representing monetary assets in an economy at a given time.

Federal Reserve

The central banking system of the United States, responsible for setting monetary policy, issuing currency, and regulating banks.

Create Money

The process by which the money supply of a country is increased, usually by the actions of its central bank or government through mechanisms like printing currency or credit creation.

Create Wealth

The process of generating value through the production, distribution, and exchange of goods and services, leading to an increase in the overall wealth of an individual, a community, or a country.