The Second-Largest Component of Aggregate Expenditures in the United States

question 66

Multiple Choice

The second-largest component of aggregate expenditures in the United States is _____.

• A)consumption.
• B)investment
• C)government expenditure
• D)imports
• E)exports

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Definitions:

Flexible Exchange Rates

Exchange rates determined by the foreign exchange market, allowing the value of a currency to fluctuate according to supply and demand.

Bretton Woods Agreement

A 1944 agreement that established a new international monetary system, creating institutions like the International Monetary Fund (IMF) and the World Bank to ensure financial stability and promote economic cooperation.

Gold Standard

An economic setup where the worth of paper money or a country's currency is directly connected to the value of gold.

Fixed Exchange Rates

A government or central bank policy to maintain the country’s currency at a constant value relative to another currency or a benchmark.