By the expenditure method, GDP equals C plus I plus G plus X minus:
ATariffs
BSavings
CInterest
DImports
Answer & Solution
Correct answer: D. Imports
1. X is exports, M is imports.
2. GDP equals C + I + G + X minus M.
3. Imports are spent on foreign firms.
_Source: syllabus Introductory Macroeconomics, Chapter 2, National Income Accounting._
Keep practising Indian Economy
Browse all Indian Economy questions for UPSC CSE, or explore more Economics topics.