A:

A. Consumption

B.
Government purchases

C.
Savings

D.
Net exports



Answer: C



Business investment is the missing element



RELATED FAQS
  1. Are there any continuing education requirements after I pass the Series 7 examination?

    Yes. According to the Securities Industry/Regulatory Council on Continuing Education (CEC), there are two parts to the CE ... Read Answer >>
  2. Which is NOT an element of M2 money supply?

    A. Dollar-denominated deposits outside the U.S. B. Cash in circulationC. Money in checking accountsD. Money in savings accounts ... Read Answer >>
  3. What is a trade deficit and what effect will it have on the stock market?

    A trade deficit, which is also referred to as net exports, is an economic condition that occurs when a country is importing ... Read Answer >>
  4. How do you calculate GDP with the expenditures approach?

    Learn how to calculate gross domestic product, or GDP, using the expenditures approach, also known as the measurement of ... Read Answer >>
  5. How are net exports influenced by the crowding out effect?

    Discover how an increase in U.S. government borrowing to finance deficits can influence the net exports of U.S. companies ... Read Answer >>
  6. If consumption was $2B, investment $0.5B, government purchases $3B, exports $1B ...

    The correct answer is b. GDP = Consumption + Investment + Government Purchases + (Exports - Imports) So, GDP = 2+0.5+3+(1-2) ... Read Answer >>
Related Articles
  1. Investing

    Understanding Net Exports

    Net exports are the difference between a country’s exports and imports.
  2. Investing

    Growth and Politics In Exports

    An export is a good or service that is shipped from one country to another for sale or trade.
  3. Investing

    Central Bankers' Role in Keynesian Economics

    Learn about the role of monetary policy in Keynesian economics, and examine how central banks impacted aggregate demand in the aftermath of the 2008 crisis.
  4. Insights

    Interesting Facts About Imports And Exports

    Imports and exports exert a profound influence on the consumer and the economy. Learn what affects these figures, and in turn how these figures affect the economy.
  5. Insights

    World's Top 10 Oil Exporters

    Discover the size of the global oil export market, and learn various details about the world's current 10 largest crude oil exporters.
  6. Investing

    Daimler’s Earnings Signal the German Economy Is Falling Apart (VOW)

    Volkswagen’s (ETR: VOW3) emission cheating scandal has come to a climax, as the German company reached a preliminary agreement with the US government.
  7. Insights

    Can Keynesian Economics Reduce Boom-Bust Cycles?

    Learn about a British economist's proposed solution to a common economic problem.
  8. Investing

    South Korea - King of Exports

    Read about one the most important and successful exporting countries in the world, and learn more about the types of products it exports.
  9. Insights

    A Look At Fiscal And Monetary Policy

    There's a debate over which policy is better for the economy. Find out which side of the fence you're on.
  10. Investing

    Deflation and Debt: Is the United States the New Japan?

    Discover how mainstream macroeconomics has failed Japan and why the United States should take care to avoid Japan's borrow, spend and print model.
RELATED TERMS
  1. Net Exporter

    A country or territory whose value of exported goods is higher ...
  2. Net Exports

    The value of a country's total exports minus the value of its ...
  3. Net Importer

    A country or territory whose value of imported goods is higher ...
  4. Export

    A function of international trade whereby goods produced in one ...
  5. Export Incentives

    Monetary, tax or legal incentives designed to encourage businesses ...
  6. Feedback-Rule Policy

    An economic policy that is triggered when a certain economic ...
Hot Definitions
  1. Death Taxes

    Taxes imposed by the federal and/or state government on someone's estate upon their death. These taxes are levied on the ...
  2. Retained Earnings

    Retained earnings is the percentage of net earnings not paid out as dividends, but retained by the company to be reinvested ...
  3. Demand Elasticity

    In economics, the demand elasticity refers to how sensitive the demand for a good is to changes in other economic variables. ...
  4. Dark Pool

    A dark pool is a private financial forum or exchange for trading securities.
  5. Quadruple Witching

    The expiration date of various stock index futures, stock index options, stock options and single stock futures. All stock ...
  6. American Opportunity Tax Credit

    A tax credit that enabled more student and parents to pay for part of their college expenses in the 2009 and 2010 tax years ...
Trading Center