The resulting economic contractions and recessions in many countries during 2008 and 2009 following the global financial crisis affected the sales of personal computer manufacturers such as Dell, whose fiscal first-quarter profit fell 63% in 2009. Decreases in consumer purchases of computers would be counted as a decline in ________, and decreases in business purchases of computers would be counted as a decline in ________.
A)consumption spending; planned investment spending
B)consumer wealth; unplanned investment spending
C)the consumption function; unplanned inventories
D)planned investment spending; unplanned investment spending

Question

Quizplus · Accepted Answer

Consumer purchases of computers would fall under consumption spending, while business purchases of computers would fall under planned investment spending. Therefore, a decline in consumer purchases would be a decline in consumption spending, and a decline in business purchases would be a decline in planned investment spending.

The Resulting Economic Contractions and Recessions in Many Countries During