Consumption spending does not include ?
Correct answer: D. Household's purchase of stock in any XYZ corporation
- A. Household's purchases of food
- B. Households' purchase of a car
- C. Household's payment of rent for an apartment
- D. Household's purchase of stock in any XYZ corporation
Explanation
Buying shares is a purchase of a financial asset, not current consumption of goods or services. Food, a car and housing rent are household consumption expenditures.
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About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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