Which of the following expenditure components of GDP can be negative or positive?
A)Consumption expenditure
B)Investment
C)Government expenditure on goods and services
D)Net exports of goods and services
E)None of the above because expenditure can never be negative.

Question

Quizplus · Accepted Answer

Net exports of goods and services can be negative if a country is importing more than it is exporting. All the other components of GDP listed (consumption, investment, and government expenditure) are typically positive, although they can vary over time. The option E is incorrect because some expenditure components can be negative.

Which of the Following Expenditure Components of GDP Can Be