Investment Expenditures Are the Sum of

question 76

Multiple Choice

Investment expenditures are the sum of

• A)business fixed investment, residential investment, and financial investment.
• B)business fixed investment and services.
• C)business fixed investment plus financial investments.
• D)business fixed investment plus inventories.
• E)business fixed investment, inventory investment, and residential investment.

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Definitions:

Consumption

The part of income or the amount of wealth that is used for purchasing goods and services for personal use.

APC

The Average Propensity to Consume indicates the share of income used for consumption purposes.

Disposable Income

Economic reserves left for households after income tax deductions, meant for spending and saving.

Consumption

The process by which goods and services are used by households, contributing to the overall demand in an economy.