FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Campbell family has a disposable income of $80,000 annually. Currently, the Campbell family spends 80% of new disposable income on consumption. Assume that their

The Campbell family has a disposable income of $80,000 annually. Currently, the Campbell family spends 80% of new disposable income on consumption. Assume that their marginal propensity to consume is 0.8 and that their autonomous consumption spending is equal to $10,000.

What is the amount of the Campbell family's annual consumer spending?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics

Macroeconomics

Authors: Charles I. Jones

3rd edition

978-0393123944, 393123944, 393923908, 978-0393923902

More Books

Students also viewed these Economics questions

Question

★★★★★
A piston-cylinder device initially contains 1.2 kg of air at 700 kPa and 2008C. At this state, the piston is touching on a pair of stops. The mass of the piston is such that 600-kPa pressure is...

Answered: 1 week ago

Question

★★★★★
What is a closely held corporation, and why do some companies choose this form of ownership?

Answered: 1 week ago

Question

★★★★★
2. Why should educators concern themselves with Abraham Maslows hierarchy of needs? A. The stages in students development might determine their ability to be successful in certain subjects. B. Social...

Answered: 1 week ago

Question

★★★★★
Industry conditions can be a source of business risks for an entity. Describe how each of the following industry conditions can result in business risks. a. The entitys market characteristics (e. g.,...

Answered: 1 week ago

Question

★★★★★
Buy It Here Inc. (BIH) provides the following store overhead costs for 2013: The following shows the total amount of resources required by Trisk and Volt (soft drinks). Assume BIH expects to sell...

Answered: 1 week ago

Question

★★★★★
Whirly Corporation's contribution format income statement for the most recent month is shown below: 30 points Sales (8,700 units) Variable expenses Contribution margin Fixed expenses Net operating...

Answered: 1 week ago

Question

★★★★★
B. Franc earns $15 an hour as a delivery driver. His company also pays him $30 a week for car maintenance. What is the function that describes Franc's weekly earnings? 1 answer

Answered: 1 week ago

Question

★★★★★
1. Matilda has been highly agitated for the past 2 weeks, particularly when watching TV. She believes that news stories about crimes occurring nationally are directed at her and that the reporters...

Answered: 1 week ago

Question

★★★★★
Greg, 40, and Melanie, 38, come to therapy with their son Adrian, who is 13. Greg explains that Adrian has always been a little different. He describes his son as a reader and a dreamer who was...

Answered: 1 week ago

Question

★★★★★
For our first paper you will have the option of writing about one of three topics: Abortion, Euthanasia, or the Death Penalty. Each topic will have two articles which you must fully read, understand,...

Answered: 1 week ago

Question

★★★★★
7. Greta has experienced severe major depressive disorder for the past 3 years. She calls her primary care physician complaining of stomach pains. Her primary care provider (PCP) explains that her...

Answered: 1 week ago

Question

★★★★★
Problem 2 - Capital Budgeting - 13 marks - 30 minutes Beta Company is considering the purchase of a new equipment to automate part of their manufacturing process. The old system can be sold for...

Answered: 1 week ago

Question

★★★★★
The relevance of the information to the interpreter

Answered: 1 week ago

Question

★★★★★
The first-hand information rule: If an event is communicated to us by someone who witnessed an event at first-hand, we will have more confidence in the information than if we were told about it by...

Answered: 1 week ago

Question

★★★★★
The background knowledge of the interpreter

Answered: 1 week ago

Previous Question Next Question