Personal consumption expenditures (PCE) include:
A) individual expenditures for durable goods
B) business expenditures for nondurable goods
C) government purchases of goods for individuals
D) foreign purchase of nondurable goods

Question

Quizplus · Accepted Answer

Personal consumption expenditures (PCE) refer to the expenditures made by households on goods and services that are consumed or used up over time. These include durable goods, such as cars or appliances, as well as nondurable goods, like food or clothing. Therefore, choice A is the best option as it includes individual expenditures for durable goods, which is a subset of PCE. Choices B, C, and D are not accurate as they do not directly relate to PCE.

Personal Consumption Expenditures (PCE) Include