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Andreas93 [3]
3 years ago
15

In Econland autonomous consumption equals 700, the marginal propensity to consume equals 0.80, net taxes are fixed at 50, planne

d investment is fixed at 100, government purchases are fixed at 100, and net exports are fixed at 40. The slope of the Expenditure Line is:A) 0.2B) 0.8C) 0.9D) 0.99
Business
1 answer:
GalinKa [24]3 years ago
5 0

Answer:

B) 0.8

Explanation:

C = 700 + 0.80(Y-T)

I = 100

G = 100

NX = 40

T = 50

Substitute into the function below

EA = C + I + G + NX

700 + 0.80(Y-50) + 100 + 100 + 40

=700 + 0.80Y - 40 + 100 + 100 + 40

ADD LIKE TERMS TOGETHER

Therefore,

EA = 900 + 0.80Y

Econland Autonomous Expenditure Line is the vertical intercept of 900

that is, 0.80

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2 years ago
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valentina_108 [34]

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Adam borrows $4,500 at 12 percent annually compounded interest to be repaid in four equal annual installments. the actual end-of
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Use the formula of the present value of an annuity ordinary which is
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