All of the Following Are Components of Aggregate Expenditure Except

question 65

Multiple Choice

All of the following are components of aggregate expenditure except

• A)consumption spending.
• B)net export spending.
• C)actual investment spending.
• D)government spending.
• E)planned investment spending.

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Definitions:

Capital-Intensive

A business process or industry that requires large amounts of money to produce goods or services, often due to high costs of machinery and equipment.

Machinery

Physical devices or equipment designed to perform specific tasks in industrial or commercial settings, often part of the fixed assets of a business.

Soft Rationing

The situation that occurs when units in a business are allocated a certain amount of financing for capital budgeting.

Hard Rationing

The situation that occurs when a business cannot raise financing for a project under any circumstances.