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Aggregate spending equals A. C+1−G+X−IM B. C+I+G+X+IM C. C+I+G−X−IM D: C−I+G+X−IM E. C+I+G+X−IM

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Aggregate Spending = C + I + G + NX (X - IM), so the correct option is (E).

Aggregate Spending refers to the total expenditure by private households, the government and foreign nationals.

It has the following components -

Consumption(C), Investment (I), Government spending (G) and Net Exports (X-IM or Exports - Imports).

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