Narrbegin Exhibit 11 -As Shown in Exhibit 11

Narrbegin Exhibit 11.1 Expenditure approach
$\begin{array}{|l|c|}\hline \text {National income account}&\text {(Billions of dollars) }\\\hline \text { Personal consumption expenditures }(C) & \$ 500 \\\hline \text { Net exports }(X-M) & 50 \\\hline \begin{array}{l}\text { Federal government consumption and gross investment } \\\text { expenditures }(G) \end{array} & 100 \\\hline \begin{array}{l}\text { State and local government consumption and } \\\text { gross investment expenditures }(G) \end{array} & 200 \\\hline \text { Imports } & 15 \\\hline \text { Gross private domestic investment }(I) & 65\\\hline\end{array}$

-As shown in Exhibit 11.1, total expenditures by businesses for fixed investment and inventories are:

A) $15 billion.
B) $50 billion.
C) $65 billion.
D) $200 billion.

Correct Answer:

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