All of the following household expenditures are included in consumption expenditure or C, EXCEPT________?

Professor Wilson ECON 10

A. Purchase of a new hat.

B. Payment to a dentist for X-Rays.

C. Purchase of a new home.

D. Purchase of hair styling products.

Solutions

Expert Solution

The right answer is option C, that is, purchase of a new home, because the purchase of a new home will be included in the investment and not in the consumption expenditure.

Rahul Sunny answered 1 year ago

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