The Expenditure Approach for the Calculation of GDP Includes Spending

question 117

Multiple Choice

The expenditure approach for the calculation of GDP includes spending on:

• A) consumption, investment, durable goods and exports.
• B) consumption, gross private domestic investment, government spending for goods and services, and exports.
• C) consumption, gross private domestic investment, government spending for goods and services, and net exports.
• D) consumption, net private domestic investment, government spending for goods and services, and net exports.
• E) consumption, gross private domestic investment, all government spending including transfer payments, and net exports.

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Definitions:

Secured Parties

Creditors who have the right to seize collateral if a debtor fails to fulfill their obligation under a secured agreement.

Unsecured Creditors

Creditors who have extended credit without the protection of collateral, making their claims on a debtor’s assets secondary to those of secured creditors.

Collateral

Property or assets pledged by a borrower to secure a loan or other credit, and subject to seizure on default.

Security Interest

A legal claim or lien on collateral that has been pledged, usually to secure repayment of a debt.