Each of the four spending components depends on income.

Name: Each of the four spending components depends on income.
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Not all four spending components (consumption, investment, government spending, and net exports) directly depend on income. For example, government spending is often determined by fiscal policy, not current income levels, and investment can be influenced by interest rates, expectations about the future, and technological changes, not just current income.

Each of the Four Spending Components Depends on Income