The Four Components of Aggregate Expenditures Are

question 184

Multiple Choice

The four components of aggregate expenditures are:

• A)consumption, imports, government spending, and net exports.
• B)consumption, interest payments, government spending, and net exports.
• C)consumer durables, investment, government spending, and net exports.
• D)consumption, investment, government spending, and net exports.

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Definitions:

Investment Projects

Initiatives undertaken by a business or organization to invest in assets or resources with the expectation of generating future profit.

Discount Rate

The interest rate used to discount future cash flows of a financial instrument to present value.

Lease Payments

Regular payments made for the use of an asset or property under a lease agreement.

Incremental Sales

The additional sales generated by a new marketing campaign, product launch, or any other business activity, over and above existing sales.