The equation for aggregate expenditure in an open economy is:
A)Y - C - I.
B)C - I - G - NX.
C)C + I +
D)C + I + G + (X - M).

Name: The equation for aggregate expenditure in an open economy is: A)Y - C - I. B)C - I - G - NX. C)C + I + D)C + I + G + (X - M).
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Question

Quizplus · Accepted Answer

The equation for aggregate expenditure in an open economy includes variables for consumption (C), investment (I), government spending (G), and net exports (X-M). Therefore, the correct choice is D which includes all these variables in the equation.

The Equation for Aggregate Expenditure in an Open Economy Is