In a Certain Economy, the Components of Planned Spending Are

question 86

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 induced expenditures?

• A)[910 − 700r ]
• B)[790 − 700r ]
• C)0.8Y
• D)0.2Y

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Definitions:

Journal Entries

Recorded transactions in the financial books of a business, marking debits and credits in accounts affected by financial events.

Accounts Payable

An accounting entry that represents a company's obligation to pay off a short-term debt to its creditors or suppliers.

T Account

A graphical representation in accounting that resembles the letter "T", used to track the increases and decreases in accounts, making it easier to understand transactions.

Credit Side

The right side of an accounting ledger where increases in liabilities, equity, and revenue accounts are recorded.