Personal consumption expenditures
A) constitute 30% of GDP.
B) can be found by subtracting saving from disposable income.
C) primarily depend on interest rates.
D) are very unstable as a percentage of GDP over time.

Question

Quizplus · Accepted Answer

Personal consumption expenditures are the amount of money that individuals spend on goods and services. It can be found by subtracting saving from disposable income, which is the income that individuals have available to spend after taxes have been deducted. Therefore, the correct choice is B.

Personal Consumption Expenditures