The aggregate expenditure in an open economy is defined as:

Name: The aggregate expenditure in an open economy is defined as:
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Question

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In an open economy, the aggregate expenditure (E) is defined as the sum of consumption (C), investment (I), government spending (G), exports (X), minus imports (M). This is because in an open economy, there are international transactions in goods and services, which are reflected in the imports and exports. Therefore, option D is the best choice.

The Aggregate Expenditure in an Open Economy Is Defined As