Answer:
B) 790-700r
Explanation:
Aggregate Expenditure is the expenditure by all the sectors of economy. By Households = Consumption (C), By Firms = Investment (I), By government = Govt spending (G) & tax leakages (T), By Rest world = Next Exports (NX).
Autonomous Expenditure is the level of expenditure in economy, which doesn't depend on level of Income = Y.
AE = C + I + G + NX
[500 + 0.8 (Y-150) - 300r] + [200 - 400r] + 200 + 10
500 + 0.8Y - 120 - 300r + 200 - 400r + 210
500 - 120 + 200 + 210 - 300r - 400r + 0.8y
790 - 700r + 0.8y
As, it can be seen that the part of AE = '790 - 700r', excluding '0.8y' : is not dependent on Income Y. So, it is Autonomous Expenditure
Answer:
Dr. Cr.
Purchases / Inventory $11,000
Promissory Note Payable $11,000
Explanation:
Promissory note is a signed document which contains a written promise for payment of stated amount to specific person or bond holder on demand or specified date.
In this case the purchases are made and a promissory note of $11,000 is signed for 45 days at 8% annual rate.
This entry will be recorded as the purchases or Inventory are debited and as promissory note is a short term liability so, promissory note payable is credited resulting increase in inventory as well increase in current liability.
Answer:
Explanation:
Price elasticity = Percentage change in demand/Percentage change in Price
Percentage change in Q= 513-236=277/513x100 = 53.99%
Percentage change in P= 0.89-0.67= 0.22/0.67x100 = 32.83%
Ed=53.99/32.83 = 1.6
Since the price elasticity of demand is elastic so the company should decrease the price to increase revenu
Answer:
It will take approximately 55 years
Explanation:
<em>The future value of a lump sum is the amount expected at a future date when a sum of money is invested today at a particular rate of interest for certain number of years</em>
FV = PV × (1+r)^(n)
FV= 50,000, PV = 4,000, n-?, r- 5%
50,000 = 4,000 × (1.05)^n
divide both sides by 4000
12.5 = 1.05^n
n= log 12.5/log 1.05
n = 51.8
The number of years = 51.8 + 3 years
=54.767
Approximately 55 years
It will take 55 years