Which of the Following Components of GDP Accounts for the Bulk

question 6

Multiple Choice

Which of the following components of GDP accounts for the bulk of national expenditures in the United States?

• A)Government purchases
• B)Imports
• C)Consumption
• D)Investment
• E)Exports

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Definitions:

Cash Dividend

This form of profit distribution by companies involves transferring cash to shareholders, typically determined by the board of directors.

Patent Amortization

The process of gradually writing off the initial cost of a patent over its useful life, reflecting its consumption or expiration.

Indirect Method

The indirect method is an approach used in cash flow statements to adjust net income for changes in non-cash accounts to calculate net cash provided by operating activities.

Indirect Method

A way of presenting a cash flow statement where net income is adjusted for changes in balance sheet items to reflect cash transactions.