Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The economy of Stranglethorn has the following parameters Autonomous desired consumption expenditures are $450. Marginal propensity to consume out of disposable income is 0.60.

image text in transcribed

The economy of Stranglethorn has the following parameters Autonomous desired consumption expenditures are $450. Marginal propensity to consume out of disposable income is 0.60. Net tax rate of national income is 10% Autonomous desired investment expenditures are $250 Autonomous government purchases are $350, Autonomous export expenditures are $150. Marginal propensity to import is 0.10 The level of desired autonomous aggregate expenditures in this economy is $ (Round your response to the nearest dollar)

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

Business Math

Authors: Cheryl Cleaves, Margie Hobbs, Jeffrey Noble

10th edition

133011208, 978-0321924308, 321924304, 978-0133011203

More Books

Students also viewed these Finance questions

Question

Is it eyewitness or hearsay evidence?

Answered: 1 week ago

Question

Interpret goodwill arising from business combinations.

Answered: 1 week ago

Question

Interpret consolidated financial statements.

Answered: 1 week ago