According to the Expenditure Approach, If Y Is GDP, C $Y = C + I + G - N X$

question 27

Multiple Choice

According to the expenditure approach, if Y is GDP, C is consumption, I is investment, G is government purchases, and NX is net exports, which of the following is the national income identity?

• A) \(Y = C + I + G - N X\)
• B) \(Y = C + I + G + N X\)
• C) \(Y + C = I + G + N X\)
• D) \(Y = ( C + I + G ) / N X\)
• E) \(Y = C + I + G\)

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Definitions:

V(X + Y)

The variance of the sum of two random variables, considering both their individual variances and the covariance between them.

V(X)

Represents the variance of a random variable X, quantifying the spread of its distribution.

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A statistical approach intended to determine the existence of an important association between two variables that are categorical.