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. 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 >>
  3. What is the Keynesian multiplier?

    The Keynesian multiplier was introduced by Richard Kahn in the 1930s. It showed that any government spending brought about ... Read Answer >>
  4. What is the difference between Keynesian economics and monetarist economics?

    Discover how the debate in macroeconomics between Keynesian economics and monetarist economics always comes down to proving ... Read Answer >>
  5. 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 >>
  6. How Do Fiscal and Monetary Policies Affect Aggregate Demand?

    Learn about the impact fiscal and monetary policy have on aggregate demand, and discover how the government influences economic ... Read Answer >>
Related Articles
  1. Investing

    Understanding Net Exports

    Net exports are the difference between a country’s exports and imports.
  2. 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.
  3. 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.
  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

    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.
  6. 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.
  7. Insights

    Can Keynesian Economics Reduce Boom-Bust Cycles?

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

    Giants Of Finance: John Maynard Keynes

    This rock star of economics advocated government intervention at a time of free-market thinking.
  10. 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.
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. New Keynesian Economics

    The modern macroeconomic school of thought that evolved from ...
  6. Government Purchases

    Expenditures made in the private sector by all levels of government, ...
Hot Definitions
  1. Fintech

    Fintech is a portmanteau of financial technology that describes an emerging financial services sector in the 21st century.
  2. Ex-Dividend

    A classification of trading shares when a declared dividend belongs to the seller rather than the buyer. A stock will be ...
  3. Debt Security

    Any debt instrument that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount ...
  4. Taxable Income

    Taxable income is described as gross income or adjusted gross income minus any deductions, exemptions or other adjustments ...
  5. Chartered Financial Analyst - CFA

    A professional designation given by the CFA Institute (formerly AIMR) that measures the competence and integrity of financial ...
  6. Initial Coin Offering (ICO)

    An Initial Coin Offering (ICO) is an unregulated means by which funds are raised for a new cryptocurrency venture.
Trading Center