Induced expenditure includes
A) consumption expenditure, government expenditure on goods and services, and imports.
B) investment, consumption expenditures, and exports.
C) consumption expenditure and imports.
D) consumption expenditure and exports.
E) consumption expenditure and government expenditure on goods and services.

Question

Quizplus · Accepted Answer

Induced expenditure refers to spending that changes with the level of income or output, such as consumption expenditure and imports, which tend to increase as income rises.

Induced Expenditure Includes