Answer:
The difference between autonomous expenditure and induced expenditure is as follows:
The autonomous expenditure is incurred even without a disposable income. The expenditure is incurred to provide basic necessities of life. In such a situation, the person spends from savings account or borrows to ensure that the basic necessities are provided.
On the other hand, induced expenditure is a disposable income-based expenditure. This implies that when disposable income rises, induced expenditure also rises, and vice versa. Induced expenditure is usually incurred to fund normal goods and services and not necessities. Without disposable income, there is no induced expenditure.
All the four sectors of the economy engage in these expenditures. The public (government) and household sectors are mostly affected. However, even the business and non-profit sectors are also affected by these types of expenditure.
Explanation:
We can distinguish between two types of aggregate expenditure. The first one is autonomous aggregate expenditure, which does not vary with the level of real GDP while induced aggregate expenditure varies with real GDP.
Answer:
<u>$289,000</u>
Explanation:
The journal entry for sale of investment for profit is:
Bank A/C Dr.
To Investments A/C
To Gain on sale of investments
(Being investments sold and profit realized being recorded)
Purchase of Investments during the year = Investments closing balance + Amount of investments sold - Investments opening balance - Gain on sale of investments
Investments purchased during the year = $1,200,000 + 80,000 - 965,000 - 26000
Investments purchased during the year = $289,000
Investments account is an asset account. A debit to such an account increases it's balance and a credit reduces it's balance.
Answer:
False
Explanation:
It is not true that, simply because you are a good driver, you should not purchase comprehensive insurance for your new car. Good drivers are still at risk of being in an accident. Moreover, this can be even more complicated if you have not finished paying for your car. If your car were to be declared a total loss in a crash, you would most likely still need to make car payments. Therefore, the best strategy to follow would be to pay for very comprehensive insurance that allows you to pay for your loss, as well as continue making payments on your car.
The answer is $52,000 my friend.