Using the Keynesian Cross, If Autonomous Consumption Is $200 and Investment

question 46

Multiple Choice

Using the Keynesian cross, if autonomous consumption is $200 and investment is $400, and the marginal propensity to consume is 0.75, while government spending, net exports and taxes are zero, then equilibrium output is

• A) $450.
• B) $600.
• C) $1,050.
• D) none of the above.

Determine depreciation expense allocation for different types of leases.

Understand the criteria for classifying leases as operating, direct financing, or sales-type leases.

Identify the correct amortization policies for capital leases involving both land and buildings.

Understand the correct presentation of Lease Receivable on a lessor's balance sheet.

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