What Is the Largest Component of Aggregate Expenditure

question 89

Multiple Choice

What is the largest component of aggregate expenditure?  

• A) government purchases 
• B) imports 
• C) consumption 
• D) investment

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Definitions:

Horizontal Merger

A horizontal merger is a business consolidation that occurs between firms who operate in the same industry, often leading to synergies, increased market share, and potentially higher market power.

Conglomerate Merger

A merger between firms that operate in entirely different industries, often aimed at diversification and risk reduction.

Trust

A legal arrangement where one party holds assets on behalf of another, or confidence in the reliability and integrity of a person or entity.

Interstate Commerce Commission

A regulatory agency in the United States established to oversee railroad operations and later expanded to oversee other modes of transportation.