Consumption consists of spending by households on goods and services, with the exception of Group of answer choices purchases of new houses. All of the selections are correct. purchase of intangible services. purchases of durable goods.

Question

Business

Sherlyn Schmidt

27 January, 00:32

Consumption consists of spending by households on goods and services, with the exception of Group of answer choices purchases of new houses. All of the selections are correct. purchase of intangible services. purchases of durable goods.

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Answers (1)

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Jonathon Tapia · Answer 1

purchases of new houses.

Explanation:

The consumption is the amount that is to be consumed by the consumer or the amount spent by the household with respect to the goods and services they are taking.

In addition, it is also included while calculating the Gross Domestic Product (GDP). The formula is shown below:

Consumption + Investment + Government purchase + Net exports

where,

Net exports = Exports - imports

So in the given situation, the purchase of a new house is considered an exception because most the people purchase the house for renting it that gives them a regular income.