Consumption spending includes spending on
A) durables,nondurables,and services.
B) stocks,bonds,and other financial instruments.
C) capital goods,residential housing,and changes in inventories.
D) goods and services by federal,provincial,and local governments.
E) goods and services sold abroad minus goods and services produced abroad.

Question

Quizplus · Accepted Answer

Consumption spending refers to the amount spent by households on goods and services such as food, clothing, entertainment, and healthcare. These goods and services can be classified as either durables (e.g. cars, appliances), nondurables (e.g. food, clothing), or services (e.g. haircuts, doctor visits). Therefore, choice A best describes what is included in consumption spending.

Consumption Spending Includes Spending on