Paper 2 · International Trade
Which of the following is a component of national income measured by the expenditure method?
Athe money supply held by the commercial banks
Bthe exchange rate against the United States dollar
Cthe rate of interest charged by banks on loans
Dinvestment by firms in new plant and equipment
Explanation: The expenditure method adds consumption, investment, government spending and net exports. The other three are monetary variables that influence spending but are not themselves part of what the country spends on final output.
Derived from ZIMSEC Economics 4050/2 Paper 2, June 2023, Q2