In the Expenditures Approach of National Income Accounting, C, Ig

question 209

Multiple Choice

In the expenditures approach of national income accounting, C, Ig, and G include expenditures for

• A) domestically produced goods and services only.
• B) domestically produced as well as imported goods and services.
• C) exported goods and services.
• D) the private sector of the economy only.

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Definitions:

Equity

The value of ownership interest in a company, represented by the shares held by investors.

Depreciation Expense

An accounting method that allocates the cost of a tangible asset over its useful life, representing the wear and tear, deterioration, or obsolescence of the asset.

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time, typically reported on the income statement.