The Largest Component of Aggregate Expenditure Is

question 16

Multiple Choice

The largest component of aggregate expenditure is

• A) consumption spending
• B) investment spending
• C) government purchases
• D) net exports
• E) a virtual tie between consumption spending and government purchases

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Definitions:

Self-effacing Bias

The tendency to attribute success to external factors and failures to oneself, often observed in cultures that value modesty and collectivism.

Japanese Subjects

Individuals from Japan participating in a study or research project.

American Subjects

Refers to research participants who are from the United States, often noted in studies to discuss the cultural or demographic background of the sample.

Self-serving Bias

The common habit where people attribute positive events to their own character but attribute negative events to external factors.