Suppose That Consumption Spending Is $4,200 Billion,spending on Durable Goods

question 9

Multiple Choice

Suppose that consumption spending is $4,200 billion,spending on durable goods is $1,200 billion,and spending on services is $2,000 billion.What does spending on nondurable goods equal?

• A)$7,200 billion
• B)$1,000 billion
• C)$2,200 billion
• D)$3,200 billion
• E)There is not enough information to answer this question.

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Definitions:

Defined Contribution Plan

A type of retirement plan where the amount of the employer's annual contribution is specified, with the final benefits received by the employee depending on the investment's performance.

Ultimate Pension Payments

The total amount of pension payments that will be made to an employee under a defined benefit pension plan over the course of their retirement.

Service Cost

The actuarial present value of benefits earned by employees in the current period under a defined benefit plan, included in pension expense.

Interest Cost

The cost incurred by an entity for borrowing funds, typically reflected as an expense in the income statement.