The components of aggregate expenditure are consumption expenditure,
A) interest, gross spending, and net spending.
B) investment, government expenditure on goods and services, and net income.
C) interest, government expenditure on goods and services, and net exports.
D) investment, government expenditure on goods and services, and net exports.
E) investment, government expenditure on goods and services, and net taxes.

Question

Quizplus · Accepted Answer

Aggregate expenditure is composed of four components: consumption expenditure, investment, government expenditure on goods and services, and net exports. Option D includes these four components while the other options do not.

The Components of Aggregate Expenditure Are Consumption Expenditure