› CFA › CFA Level 1 › Question of the Week – Economics

Question of the Week – Economics

Add A Reply
Login
  • Author
    Posts
    • Avatar of AdaptPrepAdaptPrep
      Participant
        • Undecided
        25 Apr 2018 at 8:24 am
        Up
        1
        ::

        This question is an application of the total expenditures
        formula:

        Total Expenditure = Consumption + Investments + Government
        Spending + Net Exports

        Solving for consumption, we get:

        Consumption = Total Expenditure – Investments – Government
        Spending – Net Exports

        If all the other items remain equal and government spending
        increases, consumption will         decrease.

    • Author
      Posts
    Viewing 0 reply threads
    • You must be logged in to reply to this topic.