Which of the following is not included in personal consumption expenditures?
A) new furniture and appliances bought by homeowners
B) payments for cable and Internet services to homes
C) purchases of mutual funds by consumers
D) food purchased at supermarkets

Question

Quizplus · Accepted Answer

Personal consumption expenditures (PCE) refers to the value of goods and services purchased by households. Out of the given options, purchases of mutual funds by consumers are not included in PCE since they are considered investments rather than consumption. The other options, such as new furniture and appliances, payments for cable and internet services, and food purchased at supermarkets, are all considered part of PCE.

Which of the Following Is Not Included in Personal Consumption