What Is Included in Consumption and Investment Spending Respectively

question 5

Multiple Choice

What is included in consumption and investment spending respectively?

• A)Spending on domestically produced goods and services and on new capital goods.
• B)Spending on domestically and foreign-produced goods and services,and on new capital goods.
• C)Spending on domestically produced goods and services and on net foreign investment income.
• D)Spending on domestically produced goods and services and on the purchase of stocks and bonds.

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Definitions:

Illegal

Activities or actions that are prohibited by law and subject to punishment, including civil or criminal penalties.

Consideration

Something of value that is exchanged between parties in a contract, which is necessary for the agreement to be legally binding.

Gift

Something given voluntarily without payment in return, often as a symbol of affection or goodwill.

Contract

An agreement between multiple parties that is recognized and can be enforced by the legal system.