The Largest Component of Spending in GDP Is

question 246

Multiple Choice

The largest component of spending in GDP is

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

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Definitions:

Marginal Probability

The probability of an event occurring, regardless of the outcomes of other variables; it is calculated by summing the probabilities of the event across all values of the other variables.

E(X + Y)

The expected value of the sum of two random variables, equal to the sum of their individual expected values.

Covariance

A measure that indicates the extent to which two variables change together, but does not indicate the strength of their relationship.

Independent

Not influenced by or dependent on another variable; in statistics, it often means that the occurrence of one event does not affect the probability of another event.