Aggregate expenditure is total
A. value added in the economy.
B. income of households, businesses, governments, and foreigners.
C. spending on final goods and services.
D. revenue from the sale of goods and services.
Answer: C
You might also like to view...
Which of the following is a normative economic statement?
A) Rising corn prices have increased the price of corn-based ethanol. B) With rising home prices and falling mortgage interest rates, the amount of home foreclosures has decreased. C) The federal government is considering increasing regulations on the use of fossil fuels to promote the use of wind power. D) Farmers should not be allowed to grow and sell genetically-modified crops.
Suppose the government of South Island fixes the exchange rate of its currency, the Islandia, in terms of the U.S. dollar. Initially the exchange rate is set at $1 per Islandia. Later the government changes the exchange rate to $2 per Islandia. This is an example of a(n):
A. appreciation B. devaluation C. depreciation D. revaluation