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Alona [7]
3 years ago
15

In the Income-Expenditures model, it is assumed that investment is independent of the level of (current) income. This is:

Business
1 answer:
____ [38]3 years ago
4 0

Answer:

I'm not sure what this question is about, but the concept of the income expenditures model and its components is the following:

In the income (or aggregate) expenditures model, its author (Keynes) established certain assumptions in order to analyze how the economy works as a whole. His assumptions included that investment, government spending and net exports were all independent from income level.

When the economy is at equilibrium, total expenditures (GDP) = income level = consumption + government + investment + net exports

Another important assumptions are:

  • marginal propensity to consume (MPC) + marginal propensity to save (MPS) = 1
  • consumption = autonomous consumption + [MPC x (total income level - taxes)]

Savings = investment increase when disposable income increases or real GDP increases.

This model is used to explain the relationship between labor and production levels, and how they are affected by the economy's total expenditures. By increasing expenditures, the demand for labor and products/services will increase.

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E) Evaluate financial and other factors of positions offered.

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Career planning is an aspect of career management that involves self evaluation and formulation goals to have a strong career path. It involves constant evaluation in improving skills and setting goals to ensure that one achieves career objectives that they set out. Career planning is a step-wise procedure that is to move an individual to a direction that will make him/her achieve professional excellence in the career that is chosen. The following steps are involved in career planning;

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7 0
3 years ago
(Life-Cycle Hypothesis) According to the life-cycle hypothesis, what is the typical pattern of saving and spending for an indivi
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Answer & Explanation:

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Implication rate for entire economy saving rate : It implies that economy's savings rate is high, if more population comprises of middle aged working population.

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How might the inability to provide fringe benefits affect a sole proprietors ability to run a business
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