In the Expenditure Approach to GDP, the Largest Component Is

question 371

Multiple Choice

In the expenditure approach to GDP, the largest component is

• A) government expenditure on goods and services.
• B) personal consumption expenditures.
• C) gross private domestic investment.
• D) net exports.

---

Definitions:

Risk Averse

The preference for certainty and the avoidance of risk in investments or economic decisions, often leading to choices that offer lower returns in exchange for reduced risk.

Comparable Good Outcomes

Situations where two or more goods or scenarios produce similarly beneficial effects or results.

Present Value

The present value of a future amount of money or series of cash flows at a given rate of return.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money they borrow from a lender.