The Largest Spending Component of GDP Is

question 4

Multiple Choice

The largest spending component of GDP is:

• A) consumption.
• B) investment.
• C) government spending.
• D) imports.

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Definitions:

Fixed Assets

Long-term tangible assets held for business use and not expected to be converted to cash in the upcoming fiscal year.

Sales Capacity

The maximum volume or number of units a company can sell under current resources and market conditions.

Projected Future Sales

An estimate of the amount of sales or revenues that a company expects to achieve in a future period.

Debt-Equity Ratio

An index showing the relative financing contribution of equity and debt to a company's assets.