The Components of Aggregate Expenditure That Are NOT Influenced by GDP

question 41

Multiple Choice

The components of aggregate expenditure that are NOT influenced by GDP are known as

• A)induced expenditure.
• B)planned expenditure.
• C)fixed expenditure.
• D)autonomous expenditure.
• E)unplanned expenditure.

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Definitions:

Amortized

The process of paying off a debt with a fixed repayment schedule in regular installments over a period of time.

Loan Payments

The regular payments made to repay borrowed money, typically including both principal and interest components.

Amortized

A process of paying off debt in regular installments over a period of time, where each payment is partially principal and partially interest.

Compounded Semi-annually

Refers to the process of calculating interest on both the initial principal and the accumulated interest from previous periods twice a year.