Figure 6-2 Shows a Spending Flow Model Where Both Consumption

Multiple Choice

Figure 6-2 shows a spending flow model where both consumption and investment goods are being produced. Use the figure to answer questions .
Figure 6-2
-Refer to Figure 6-2. A New York restaurant purchases 1,000 cases of wine from a winery in France. This transaction is recorded as part of:

A) gross private investment and the flow is represented by 2.
B) net exports and the flow is represented by 4.
C) consumption expenditure and the flow is represented by 1.
D) consumption expenditure and the flow is represented by 4.