The Components of Aggregate Expenditure That Depend Negatively on the Interest

question 12

Multiple Choice

The components of aggregate expenditure that depend negatively on the interest rate are:

• A)consumption, investment and government expenditure
• B)investment, government expenditure and net exports
• C)consumption, investment and net exports
• D)consumption, taxes and net exports

---

Definitions:

Income Statement

The income statement is a financial report that shows a company's revenues, expenses, and profits over a specific period, highlighting its financial performance.

Contribution Format

An income statement format that separates fixed and variable costs, highlighting the contribution margin of a company's products or services.

Segmented Statements

Financial reports that break down the revenue, costs, and profitability of different parts of a company, such as departments or product lines.

Variable Costing

Variable costing is a costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in unit product costs.