Which of the Following Variables in the Expenditure Model Are

question 103

Multiple Choice

Which of the following variables in the expenditure model are wholly autonomous and which are partly induced?

• A)I,G,and X_N are autonomous;S,IM,and C are partly induced.
• B)I,G,and C are autonomous;S,IM,and X are partly induced.
• C)I,G,and X are autonomous;S,IM,and C are partly induced.
• D)G,X,and IM are autonomous;S,C,and I are partly induced.

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Definitions:

Present Value

The now value of a future financial amount or series of cash flows, discounted at a particular rate of return.

Future Value

The value of an investment at a future date, considering compound interest or returns over time.

Amortized Loans

Loans that are paid off over time through a series of fixed, regular payments where part of each payment covers the interest expense and the remaining amount reduces the principal balance.

Balloon Payment

A large, one-time payment made at the end of a loan term to pay off the remaining balance, typically used in mortgage or bond agreements.