Suppose that consumption spending is $3,200 billion, spending on durable goods is $800 billion, and spending on services is $1,800 billion. What does spending on nondurable goods equal?
A. $5,800 billion
B. $600 billion
C. $2,400 billion
D. $3,200 billion
E. There is not enough information to answer this question.
Answer: B. $600 billion.
IN BILLIONS OF DOLLARS.
Consumption spending = spending on durable goods + spending on nondurable goods + spending on services.
3200 = 800 + spending on nondurable goods + 1800.
spending on nondurable goods = 3200 - 1800 - 800
spending on nondurable goods = 3200 - 2600
spending on nondurable goods = 600
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