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National expenditure includes

  1. A
    Consumption expenditure
  2. B
    Investment expenditure
  3. C
    Government expenditure
  4. D
    All of the above

Solution & Step-by-step Explanation

National expenditure represents the total aggregate spending in an economy. It is mathematically calculated using the expenditure method equation for National Income:


where is private consumption expenditure, is investment expenditure, is government spending, and represents net exports. Therefore, consumption, investment, and government expenditure are all vital parts of national expenditure.

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National expenditure includes
A
Consumption expenditure
B
Investment expenditure
C
Government expenditure
D
All of the above

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