If gross domestic expenditure increased while expenditure on gross domestic expenditure declined,...

Question:

If gross domestic expenditure increased while expenditure on gross domestic expenditure declined, one can conclude that it might be the result of a/an _____.

1. Decline in exports and an increase in imports,

2. Increase in exports and a decline in imports,

3. Decrease in final consumption expenditure of households,

4. Negative change in inventories.

Gross Domestic Expenditure:

In economics gross domestic expenditure means the total outflow of cash for different economic activities by the different stake holders in the economy. Gross domestic expenditure (GDE) is equal to the summation of final consumption of household expenditure by households, general government consumption expenditure by total capital formation and the residual item.

Answer and Explanation: 1

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_1 Decline in exports and an increase in imports

When export is reduced and imports are increased there is a balance of payment deficit and budget...

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What is a Budget Deficit? - Definition, Causes & History

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Chapter 11 / Lesson 14
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Examine the budget deficit definition and the causes of budget deficits. Find out how government budget deficits affect the economy and learn relevant history.


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