What Is the Largest Component of Aggregate Demand

question 74

Multiple Choice

What is the largest component of aggregate demand?

• A)government purchases
• B)net exports
• C)consumption
• D)investment

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Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, particularly affecting its liquidity.

Profit (Loss)

The financial result of a company's operations, calculated as revenues minus expenses. A positive result indicates a profit, while a negative result indicates a loss.

Audit Committee

A subcommittee of a company's board of directors that oversees financial reporting and disclosure.

Financial Reporting Process

The procedure of preparing financial reports that disclose an organization's financial status to management, investors, and regulators.