In the Aggregate Expenditure Model,________ Has Both an Autonomous Component

question 133

Multiple Choice

In the aggregate expenditure model,________ has both an autonomous component and an induced component.

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

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Definitions:

Treasury Stock

Shares of a company's own stock that it has repurchased from shareholders and can hold, reissue, or retire.

Common Stock

Represents ownership shares in a corporation, giving shareholders voting rights and a residue claim on corporate earnings in the form of dividends.

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to investors, which are reinvested in the business.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenues.