In a Certain Economy, the Components of Planned Spending Are

question 53

Multiple Choice

In a certain economy, the components of planned spending are given by: C = 500 + 0.8(Y - T) - 300r
Ip = 200 - 400r
G = 200
NX = 10
T = 150
Given the information about the economy above, what would be the impact on induced expenditures of a one-percentage-point increase in the real interest rate?

• A)Induced expenditures would increase by 35 units.
• B)Induced expenditures would not change.
• C)Induced expenditures would decrease by 35 units.
• D)Induced expenditures would decrease by 7 units.

---

Definitions:

Number Of Employees

The total count of individuals employed by a company or organization, regardless of their employment status (full-time, part-time, etc.).

Activity-Based Costing

A costing methodology that assigns overhead and indirect costs to specific activities, providing more accurate product or service costs.

Activity Cost Pools

These are groupings of individual costs, based on the activities that drive costs in an organization, which are used in activity-based costing to allocate costs more accurately.

Machine-Hours

A measure of production time, quantifying the number of hours machines are operating in the manufacturing process.