In a Certain Economy, the Components of Planned Spending Are

question 110

Multiple Choice

In a certain economy, the components of planned spending are given by: C = 500 + 0.8(Y - T) - 300r
I ᴾ = 200 - 400r
G = 200
NX = 10
T = 150
 
Given the information about the economy above, which expression gives autonomous expenditures?

• A)0.8Y
• B)[790 − 700r ]
• C)[910 − 700r ]
• D)[760 − 700r ]

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Definitions:

Marginal Utility

The additional satisfaction or utility that one receives from consuming one more unit of a good or service.

Donut

A fried dough confection or dessert food, usually ring-shaped or without a hole and filled with various sweet fillings or toppings.

Total Utility

The total satisfaction or benefit received from consuming a particular quantity of a good or service.

Donuts

A sweet, fried or baked pastry, often circular with a hole in the middle, available in various flavors and toppings.