Total Spending in an Economy Is the Sum of

question 11

Multiple Choice

Total spending in an economy is the sum of

• A) durable goods plus nondurable goods plus services.
• B) imports minus exports.
• C) personal consumption plus gross private investment plus government spending plus net exports.
• D) food consumption plus housing expenditures plus business expenditures plus government spending.

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Definitions:

Interest Rate

The portion of the loan that applies interest costs to the borrower, generally formulated as an annual percentage of the still outstanding loan amount.

Investment

The allocation of resources, usually money, in the expectation of generating an income or profit.

Gross Investment

The total amount spent on new capital assets before accounting for depreciation, reflecting an economy's investment levels.

Plant And Equipment

Physical assets of a business that are permanent structures or fixed machinery used in operations.