The jones family has a disposable income of $90,000 annually. assume that their marginal propensity to consume is 0.8 (the jones family spends 80% of new disposable income on consumption) and that their autonomous consumption spending is equal to $10,000. what is the amount of the jones family\'s annual consumer spending?

Explanation:

Social exchange theory says relationships and our feelings in them are based on the few factors:

Cost and reward – this is one of the main concepts in the social exchange theory. It takes into consideration what we give in the relationship (time, support, compassion, money, etc.) and what we can gain from it (rewards, acceptance, advice, support, etc.). In order to have a full relationship, a balance between these two has to be found. We need to gain some benefit from the relationship and to get as much as we give. Otherwise, this can be considered to be a parasocial relationship. Expectations of relationship – This part considers what we think we deserve from the relationship and what we want from it. If we don’t think our partner or friend is not worth us, we won’t have the positive feelings towards them. Evaluation and alternatives – evaluation of what other possibilities we have means we are thinking can we have a better relationship somewhere else with somebody else. If we believe that we can find someone who is better suited for us, we will likely lower our feelings towards the person and leave the relationship. Lenght – The time we have known and spend with the person is also a valuable factor. Sometimes, the more time we invest in the relationship, the more attached we feel. However, there is a certain period called the “honeymoon period” in every relationship during which we think all is great. Only after this period is over, and as we begin to see the person and our relationship in a true light, can we truly decide on our feelings.