Question

Consumption expenditures: a. Account for over two-thirds of total spending. b. Include purchases of new and used goods by consumers. c. Are equal to disposable personal income plus personal savings. d. Are equal to consumer spending plus transfer payments

Answer 1

A) Account for over two-thirds of total spending.

Step-by-step explanation:

In the US, consumption represents around 70% of the gross domestic product. It is by far the most important component of the GDP. It includes all the final goods and services purchased by private households.

Services represent 60% of personal consumption ,e.g. banking, health care, education, etc. The remaining 40% is divided between durable goods (cars, furniture, etc.) and non-durable goods (clothing, food, gas, etc.).