Total expenditure in the United States is equal to consumption expenditure plus investment
A)plus government expenditure on goods and services plus imports of goods and services.
B)minus government expenditure on goods and services minus imports of goods and services.
C)plus government expenditure on goods and services plus exports of goods and services.
D)plus government expenditure on goods and services plus exports of goods and services minus imports of goods and services.
E)plus government expenditure on goods and services plus exports of goods and services plus imports of goods and services.

Question

Quizplus · Accepted Answer

Total expenditure in the United States includes consumption expenditure, investment, government expenditure on goods and services, exports of goods and services, and imports of goods and services. Therefore, option D is the best choice because it includes all of these components and subtracts imports since they are not produced domestically, while adding exports since they are produced domestically and sold abroad.

Total Expenditure in the United States Is Equal to Consumption