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stepan [7]
3 years ago
11

Scenario: Aggregate Consumption Equation Suppose that the aggregate consumption function is given by the equation: C = 200 + 0.8

YD, where C represents consumption and YD represents disposable income. Reference: Ref 25-9 (Scenario: Aggregate Consumption Equation) According to the scenario Aggregate Consumption Equation, if disposable income is $500, aggregate consumption is:
A. $0.
B. $200.
C. $400.
D. $600.
Business
1 answer:
scZoUnD [109]3 years ago
6 0

Answer:

The correct answer and the letter d. $600.

Explanation:

A consumption equation relates aggregate consumption with disposable income (income minus taxes). In this way, it shows how the increase in aggregate disposable income, that is, of the whole economy, impacts aggregate consumption. In this case, we have the consumption function given by: C = 200 + 0.8YD, and the disposable income is $ 500. Like this,

C = 200 + 0.8YD

C = 200 + 0.8 (500)

C = 600.

That is, by including the disposable income of $ 500 in the consumption equation, we will have an aggregate consumption of $ 600.

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Answer:

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This is primarily because a customer takes into account many considerations before making a decision.

8 0
3 years ago
From the list that jill made for a shopping trip to the grocery store, she could recall only the items in the beginning and in t
Veseljchak [2.6K]

this is an example of semantic memory

<h3>What is semantic memory?</h3>

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8 0
1 year ago
If the number of demanders for electric cars increases at the same time as the number of suppliers of electric cars increases, w
Dmitriy789 [7]

Answer:

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Explanation:

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I hope my answer helps you

7 0
3 years ago
Vinson Company purchased a patent for $180,000 at the beginning of Year8, and estimated that its expected useful life was 5 year
Alona [7]

Answer:

amortization expense is $36000

Explanation:

given data

purchased = $180000

time = 5 year

to find out

amount recorded as amortization expense

solution

we know here purchased  patent  for 180000 and here life is 5 years

so here

amortization expense will be purchased / time

amortization expense =  purchased / time

amortization expense = 180000 / 5

so amortization expense is $36000

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