Assume that autonomous consumption is $1,625 billion and disposable income is $11,500 billion. Calculate consumption expenditure if

Question:

Assume that autonomous consumption is $1,625 billion and disposable income is $11,500 billion. Calculate consumption expenditure if an increase of $1,000 in disposable income leads to an increase of $750 in consumption expenditure.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Foundations of Macroeconomics

ISBN: 978-0134492001

8th edition

Authors: Robin Bade, Michael Parkin

See More Books

Question Posted: Mar 13, 2018 08:46 AM

See More Questions

Assume that the following data describe the condition of commercial banking system: Total reserve:..................$80 billion Transaction deposit.........$700 billion Cash held by public:...........
1. Kevin Jones is single and recently graduated from law school. He earns $9000 per month, an awesome salary for someone only 26 years old. He also has $1400 withheld for federal income tax, $540 for...
1. Distinguish among the debt payments-to-disposable income, debt-service-to-income, debt-to-equity ratios, and continues-debt methods for setting your debt limit. 2. What are the threshold levels...
CORPORATE FINANCE- RISK MANAGEMENT You manage a Swedish company that produces hats. You source your textiles mainly from Poland. The next input delivery from Poland is coming in three months. The...
With Tr = 0.85 and a quality of 0.6 find the compressibility factor using Fig. D.1
Determine the minimum-cost spanning tree for the following graph. A 3 B 18 C 6 15 21 24 D 12 E 27 F.
describe the role of strategic groups in defining change challenges; and
Flow between two tanks (Fig. 7B.4). Case I: A fluid flows between two tanks A and B because PA > PB. The tanks are at the same elevation and there is no pump in the line. The connecting line has a...
E2-2 Selected transactions for R. Sparks, an interior decorator, in her fi rst month of business, are as follows. Jan. 2 Invested $10,000 cash in business. 3 Purchased used car for $4,000 cash for...
The balance sheet of Hutter Amalgamated is shown below. If the 12/31/2010 value of operations is $756 million, what is the 12/31/2010 intrinsic market value of equity? Balance Sheet, December 31,...
Suppose the money supply M has been growing at 10% per year, and nominal GDP, PY, has been growing at 20% per year. The data are as follows (in billions of dollars): Calculate the velocity for each...
Suppose that Dell Corporation has 20,000 computers in its warehouses on December 31, 2016, ready to be shipped to merchants (each computer is valued at $500). By December 31, 2017, Dell Corporation...
What are reputational rents, and how are they significant?
How do you assess the managerial challenge posing the decision of having an organization-wide uniform package of compensation and benefits in the present context of organizations having diversity of...
what you have to do is make order decisions based on the sales, stock, and delivery cycle of each item. You are making decisions of marking orders from suppliers, and they will deliver the item next...
How do advanced relaxation techniques, such as progressive muscle relaxation or guided imagery, contribute to a comprehensive stress management plan ?
What role do intermediaries play in intermediation in the market? Do middlemen exist in the online market? How? Talk about the following ideas with examples from real life: (1) the issues with direct...
Identify and conduct a 5S project that you could do at home, school, or your place of employment. For each of the 5 steps, define what you would do to address the situation. Describe the outcome. .
Factor the expression completely. 2 - 9z+20
Cleaning Service Company's Trial Balance on December 31, 2020 is as follows: Account name Debit Credit Cash 700 Supplies Pre-paid insurance Pre-paid office rent Equipment Accumulated depreciation -...
Indicate in which financial statement each of the following adjusted trial balance accounts would be presented. Service Revenue ......Accounts Receivable Notes Payable .......Accumulated Depreciation...
After closing revenues and expense, Natraj Company shows the following account balances. Dividends...................$22,000 Retained Earnings ................70,000 Income Summary...
The following independent situations require professional judgment for determining when to recognize revenue from the transactions. (a) Southwest Airlines sells you an advance-purchase airline ticket...
you are analyzing the cost of debt for a firm. Do you know that the firms 14 year maturity, 7.8 Percent coupon bonds are selling at a price of $834. The Barnes pay interest semi annually. If these...
***Please answer the following using excel and showcasing the formulas/calculations used*** thank you so much Financial information on AAA Ltd. is shown below. AAA Ltd. Income Statement For the Year...
2. In an account Anh Paglinawan currently has $216,670.00. At a rate of 8.00% how long will it take for them to have $298,390.00 assuming semi-annually compounding? (Hint: compute the exact years, do...

Assume that autonomous consumption is $1,625 billion and disposable income is $11,500 billion. Calculate consumption expenditure if

Question:

Step by Step Answer:

From the given information we can know that mpc 075 ...View the full answer

Foundations of Macroeconomics

Students also viewed these Corporate Finance questions