1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
diamong [38]
2 years ago
11

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. 990
b. 940
c. 900
d. 890
Business
1 answer:
ANTONII [103]2 years ago
4 0

Answer:

expenditure  = 900 + 0.80Y

correct option is c. 900

Explanation:

given data

Econland autonomous consumption Co = 700

marginal propensity to consume = 0.80

net taxes = 50

planned investment = 100

government purchases = 100

net exports = 40

to find out

The slope of the expenditure line

solution

we know equation of consumption line that is express as function C  

C = a+b(Y-T)    ...................1

here a is autonomus consumption and b is marginal propensity and Y is equilibrium GDP and T is taxes so

it will be

C =  [700 + 0.80(Y - 50)]    

and aggregate expenditure is here

aggregate expenditure = C + I + G + NX ..............................2

here I is plan investment and G is government purchases and NX is net exports so

put all value we  will get here  

expenditure PAE = [700 + 0.80(Y - 50)] + 100 + 100 + 40

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

PAE  = 900 + 0.80Y

as slope of expenditure is marginal propensity

and we know that all are fixed except marginal propensity to consume

so correct option is c. 900

You might be interested in
You are the executive director of a nonprofit that runs an animal shelter and animal services, such as low-cost spay/neuter prog
EleoNora [17]

Answer:

Hold meeting with employees, volunteers and representatives of other local shelters and listen carefully as they brainstorm ideas.

Explanation:

A leader can be defined as an individual who motivates and inspires a group of people towards achieving a common goal. A good leader must possess the following characteristics:

1) A leader must be a good communicator, he/she must be able to deliver information to the group in an orderly manner.

2) A good leader must be able to inspires others.

3) A leader must lead with honesty.

4) A leader must be able to make good decisions.

5) A good leader should be able to account for his/her various activities.

8 0
3 years ago
What is a toxic leader?
andriy [413]

A selfish leader that lets his/her desires above the good of their people.

7 0
3 years ago
Read 2 more answers
International monetary analysis focuses on Group of answer choices the international trade side of the international economy. th
Ganezh [65]

Answer:

the monetary side of the international economy, such as currency exchange.

Explanation:

Globalization can be defined as the strategic process which involves the integration of various markets across the world to form a large global marketplace. Basically, globalization makes it possible for various organizations to produce goods and services that is used by consumers across the world.

An exchange rate can be defined as a number used to represent the value of one country's currency in comparison to another.

International monetary analysis focuses on the monetary side of the international economy, such as currency exchange.

6 0
2 years ago
On January 1, 2021, White Water issues $570,000 of 7% bonds, due in 10 years, with interest payable annually on December 31 each
monitta

Answer:

White Water

1. Schedule

Date            Cash Paid     Interest Expense   Increase in Carrying value  FV

01/01/2021 0                                                                           $570,000.00

12/31/2021    $39,900.0       $39,900.00     0                       $570,000.00

12/31/2022  $39,900.0       $39,900.00     0                       $570,000.00

2. January 1, 2021:

Debit Cash $570,000

Credit 7% Bonds Payable $570,000

To record the issue of bonds for cash.

December 31, 2021:

Debit Interest Expense $39,900

Credit Cash $39,900

To record the first interest payment.

December 31, 2022:

Debit Interest Expense $39,900

Credit Cash $39,900

To record the second interest payment.

Explanation:

a) Data and Calculations:

Face value of 7% bonds = $570,000

Proceeds from the bond issue = $570,000

No premiums, no discounts on bonds.

Coupon interest rate = 7%

Market interest rate = 7%

6 0
2 years ago
A certain company has purchased new swivel chairs for its employees. The company made the purchase on a credit plan at Buy Right
vlabodo [156]

Answer: $45,862.29

Explanation:

This question relates to the Present value of an Annuity.

The original price would be the present value of the payments and since the payments are constant over a period, they are an annuity

Interest/ r = 2.25/12 months = 0.1875%

Periods/ n = 4 * 12 months = 48 months

= Payment * (( 1 - ( 1 + r) ^ n)/ r)

= 1,000 * (( 1 - ( 1 + 0.1875%)^48) / 0.1875%)

= $45,862.29

7 0
2 years ago
Other questions:
  • The unemployment rate of: a. teenagers is much higher than that of adults. b. women greatly exceeds that of men. c. whites is ro
    9·1 answer
  • Discuss the principle of Acquisitions Management thoroughly. What is the most important? What do you think will become more impo
    10·1 answer
  • Joe needs display racks and cabinets to open his clothing store, but he doesn't have the money to pay for them right away. A sup
    15·1 answer
  • Which of the following is not a major determinant of the price elasticity of demand? A. availability of close substitutes B. pro
    11·1 answer
  • What happens to the chart as you update its data table?
    10·2 answers
  • Able Company issued $600,000 of 9 percent first mortgage bonds on January 1, 20X1, at 103. The bonds mature in 20 years and pay
    9·1 answer
  • 2. Why might this be the perfect advice for beginning investors?
    8·1 answer
  • April is worried that she is not a "good speller," so she plans to let the spelling
    14·1 answer
  • how to know if your friend is lying to you? he has a bruise and I made a random guess and he froze up
    15·2 answers
  • Making hypothetical changes to data and observing the results is:
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!