Given the following data,what is the distance from the origin to the point where the total expenditures (TE)curve cuts the vertical axis?
C = $700 + 0.75Yd
I = $350
G = $640

A) $1,690
B) $1,050
C) $1,220
D) $990
E) $1,050.75

Question

Given the following data,what is the distance from the origin to the point where the total expenditures (TE)curve cuts the vertical axis? ​
C = $700 + 0.75Yd
I = $350
G = $640
​
A) $1,690
B) $1,050
C) $1,220
D) $990
E) $1,050.75

Quizplus · Accepted Answer

The total expenditures (TE) curve is found by adding up all components of spending, which includes Consumption (C), Investment (I), and Government spending (G). Given C = $700 + 0.75Yd (where Yd is disposable income), I = $350, and G = $640, and assuming Yd = 0 (to find the point where the TE curve cuts the vertical axis), the calculation is as follows: TE = C + I + G = $700 + $350 + $640 = $1,690.

Given the Following Data,what Is the Distance from the Origin