The purchase by a household in China of a CD produced in the United States is included in U.S.
A)consumption expenditures.
B)investment expenditures.
C)government purchases.
D)net exports.

Question

Quizplus · Accepted Answer

The purchase by a household in China of a CD produced in the United States would be a part of U.S. net exports, as it represents a good produced in the U.S. that is being consumed in another country. It is not considered a consumption expenditure, investment expenditure, or government purchase, as those categories refer to spending within the domestic economy.

The Purchase by a Household in China of a CD