Which Is the Smallest Component of Aggregate Expenditure

question 300

Multiple Choice

Which is the smallest component of aggregate expenditure?

• A)planned investment expenditures
• B)consumption expenditures
• C)government expenditures
• D)net export expenditures
• E)federal government tax revenue

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Definitions:

Capital Stock

The total amount of stock that a company is authorized to issue, representing ownership in the company.

Cumulative Preferred Stock

Preferred stock that, if the corporation doesn’t pay the specified percentage, has the unpaid amount (the dividend in arrears) carried over to the following year or years.

Capital Stock

The total amount of shares that a corporation is authorized to issue to shareholders, representing the primary source of equity financing for the company.

Cumulative Preferred Stock

A type of preferred stock that entitles the shareholder to receive dividends that were missed in the past before any dividends are paid to common stock shareholders.