Induced expenditure includes _________.
A) induced consumption expenditure and imports
B) induced consumption expenditure and exports
C) all autonomous expenditure
D) induced consumption and government expenditure

Question

Quizplus · Accepted Answer

Induced expenditure includes induced consumption expenditure (the amount of consumption expenditure that is a result of an increase in income) and imports (the additional amount of imports that is purchased as income increases). The other options listed do not fully capture what induced expenditure includes.

Induced Expenditure Includes _________