Question

In 2 or 3 sentences, explain the trend in consumption, investments, and Gross Domestic Product. Are these areas generally increasing or decreasing during this time? In 1 or 2 sentences, explain if these trends show that expansionary monetary policy was effective in 2008 - 2009 .

Answer 1

• Answer:GDP:Accordingly, GDP is defined by the following formula: GDP = Consumption + Investment + Government Spending + Net Exports or more succinctly as GDP = C + I + G + NX where consumption (C) represents private-consumption expenditures by households and nonprofit organizations, investment (I) refers to business expenditures.
• Investments: the action or process of investing money for profit or material result.
• consumption: the using up of a resource. :)