The Largest Component of Aggregate Demand Is

question 159

Multiple Choice

The largest component of aggregate demand is

• A)investment spending.
• B)consumer spending.
• C)government spending.
• D)total imports.

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Definitions:

Commitment Fee

A fee charged by a bank for guaranteeing to have loanable funds available. The fee is charged on un borrowed amounts up to the maximum of the guarantee. See Revolving credit agreement.

Line of Credit

An arrangement between a financial institution and a customer that establishes a maximum loan balance the borrower can access.

Clean-Up Requirement

A term often used in banking, referring to a requirement that a borrower must pay down a line of credit to zero or to a specific level at least once within a certain period.

Loan Payoff Requirement

The terms or conditions under which a borrower is obliged to repay the principal and interest on a loan.