Personal Consumption Expenditures

question 156

Multiple Choice

Personal consumption expenditures

• A) constitute 30% of GDP.
• B) can be found by subtracting saving from disposable income.
• C) primarily depend on interest rates.
• D) are very unstable as a percentage of GDP over time.

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Definitions:

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and entitles the shareholder to vote on corporate matters.

Stockholders' Equity

Signifies the stake of shareholders in a corporation, determined by subtracting total liabilities from total assets.

Preference Rights

A set of privileges or priorities given to shareholders, such as the right to purchase new shares before the general public.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, usually with fixed dividends.