In the United States, the largest expenditure component in GDP is
A) gross private domestic investment.
B) government purchases of goods and services.
C) consumption expenditures.
D) net exports.
E) none of the above
C
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Which of the following is a tool that is used by the Fed to control the quantity of money?
A) open market operations B) excess reserves C) government expenditure multiplier D) real interest rate
Critically evaluate the following statement. "Monopolists are able to pass on the full amount of any increase in their fixed cost to the consumer in the form of higher prices."
What will be an ideal response?
A tax on consumption for those who are nonsavers
A. is equivalent to a tax on income. B. causes income gains to increase dramatically. C. would be preferred to a tax on wealth. D. makes it difficult to tell what the result for the nonsavers would be.
The manager of Healthy Bars should avoid all of the following topics except which one when speaking to managers of Healthy Snacks, a competitor firm?
A) Healthy Bars' intent to bid on a government contract to supply public schools with healthy snack foods B) the planned production amounts of Healthy Crunch, another competitor firm C) new government safety regulations for packaging snack foods D) a forthcoming change in Healthy Bars' pricing policy