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mariarad [96]
4 years ago
10

assume that the marginal propensity to consume is 0.90 and autonomous consumption expenditures equals $100 billion. Further, ass

ume that planned investment spending is
Business
1 answer:
devlian [24]4 years ago
3 0

Answer:

  1. $4 trillion or $4,000 billion
  2. $3.5 trillion or $3,500 billion

Explanation:

1. Equilibrium Output or GDP is calculated by the expression;

Output or Y = Consumption + Investment + Government expenditure + Net exports

Net exports and Government expenditure are assumed to be 0.

Consumption  = 100 + 0.9Y

Investment = $300 billion

Y = 100 + 0.9Y + 300

Y - 0.9Y = 400

Y = 400/0.1

Y = $4,000 billion

2. Y = 50 + 0.9Y + 300

Y - 0.9Y = 350

0.1Y = 350

Y = 350/0.1

Y = $3,500 Billion

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Answer:

(A) True

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So the statement “The differential cost of producing Product P is $13 per pound” is true

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3 years ago
"You plan to buy a piece of machinery worth $50,000 then you plan to sell it at the end of its 15-year life cycle for $5,000. Wh
Aleks04 [339]

Answer:

$3,000 and $35,000

Explanation:

The computations are shown below:

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4 years ago
What's the difference between current balance and available balance?
pickupchik [31]
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A company that uses a strategy of selling its products to a distributor in another country would be using <u>exporting.</u>

<u></u>

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Because they give people and businesses access to a larger market for their products, exports are crucial to modern economies. Fostering economic commerce, and boosting exports and imports for the advantage of all trading parties, is one of the primary goals of diplomacy and foreign policy between countries.

<u>Benefits of Exporting for Businesses</u>

There are numerous reasons why businesses export their goods and services. If the goods open up new markets or widen existing ones, exports can boost sales and profits and may even offer the chance to gain a sizeable portion of the worldwide market. Exporting businesses diversify their markets to reduce business risk.

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