Which of the Following Is NOT a Component of Consumption

question 5

Multiple Choice

Which of the following is NOT a component of consumption?

• A)nondurable goods
• B)purchase of a new condominium
• C)education expenses
• D)none of the above

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Definitions:

Excess Reserves

The amount of reserves that a bank holds beyond the required minimum, often held in excess of reserve requirements set by central banking authorities.

Money Supply

The aggregate monetary value within an economy, including cash, coins, and all balances in checking and savings accounts, at a given moment.

Interest Rates

The cost of borrowing money or the reward for saving, typically expressed as a percentage of the principal.

Equilibrium GDP

The level of Gross Domestic Product where the total output of an economy equals the total demand.