Which of the Following Examples of Household Spending Is Categorized

question 8

Multiple Choice

Which of the following examples of household spending is categorized as investment rather than consumption?

• A)expenditures on durable goods such as automobiles and refrigerators
• B)expenditures on intangibles items such as medical care
• C)expenditures on new housing
• D)All of the above are correct.

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Definitions:

Cash Budget

A financial tool used by businesses to plan for their cash inflows and outflows over a specific period to manage liquidity.

Budgeted Disbursements

Forecasted cash outflows for a specific period, often part of a company's cash budget and crucial for managing liquidity.

Desired Balance

The targeted amount of funds or resources a company or individual aims to have available at a certain point in time for a specific purpose.

Excess (Deficiency)

The difference between what was budgeted or expected in financial projections and the actual amount received or spent, indicating a surplus or shortfall.