The purchases made by the foreign sector are called __________; the purchases made by the household sector are called __________; the purchases made by the government sector are called __________; and the purchases made by the business sector are called investment.
A) net exports; consumption; net interest
B) net exports; domestic spending; government purchases
C) net exports; consumption; government purchases
D) exports; domestic spending; government product
E) imports; consumption; government expenditures

Question

Quizplus · Accepted Answer

The correct terms for purchases made by the different sectors are: foreign sector - net exports, household sector - consumption, government sector - government purchases, and the business sector purchases are indeed called investment.

The Purchases Made by the Foreign Sector Are Called __________;