The Factor Income Approach Classifies All of the Spending in a Nation

question 43

True/False

The factor income approach classifies all of the spending in a nation as consumption,investment,government purchases,or net exports.

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Definitions:

SWOT Analysis

A strategic planning tool used to identify and understand an organization’s Strengths, Weaknesses, Opportunities, and Threats.

Substitute Products

Products that serve as alternatives to each other; when the price of one increases, the demand for the alternative typically increases.

Regulations

Rules or directives made and maintained by an authority to control or govern behavior and practices within specific areas.

Diversification

A strategy of investing in a variety of assets to reduce overall risk.