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Anna71 [15]
2 years ago
9

Your friend just got an unexpected $1,000 tax refund. She plans to put $800 towards paying off credit card debt, $100 toward her

student loans, and use the remaining $100 to purchase a new grill for her deck. What's your friend's marginal propensity to consume (MPC)
Business
1 answer:
Lubov Fominskaja [6]2 years ago
4 0

Based on the expenses that she spent on and the amount received, your friends Marginal Propensity to Consume is 0.1 or 10%.

<h3>What is her MPC?</h3>

Marginal propensity to consume can be found by the formula:
= Increase in consumption / Increase in income

The only consumption will be the $100 spent on the new grill.

MPC is:

= 100 / 1,000

= 10%

Find out more on Marginal Propensity to Consume at brainly.com/question/17930875.

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The Federal National Mortgage Association (Fannie Mae) was originally established to provide a secondary market for FHA-insured
Crazy boy [7]

The statements regarding Fannie Mae loan are true except that A. Fannie Mae lends money directly to homebuyers.

<h3>How to illustrate the information?</h3>

It should be noted that Federal National Mortgage Association (Fannie Mae) was established to provide a secondary market for FHA-insured and VA-guaranteed loans.

Fannie Mae fully guarantees timely payment of interest and principal to investors and is authorized to buy both conventional home loans and government-sponsored

In conclusion, the correct option is A.

Learn more about loan on:

brainly.com/question/26011426

#SPJ1

3 0
2 years ago
Economics is the study of a society's financial institutions. true or false​
rusak2 [61]

Answer:

False

Explanation:

8 0
3 years ago
A company planning to market a new model of motor scooter analyzes the effect of changes in the selling price of the motor​ scoo
Andrew [12]

Answer:

A. If the motor scooter is sold for $2.480, then the net present value (NPV) for the product will be zero.

Explanation:

As we believe that The break even point is the point where the organization has no income gained and no loss incurred While the present net value is the value that determines whether or not the projects will be approved after considering the discounted cost.  

It means that if the original investment is less than the present value then the proposal is otherwise refused, the break even point is where the net present value is zero

Hence, the first option is correct

3 0
3 years ago
A review of Munchen Corporation's financial statements reveals the following information: cost of goods sold: $100,000; decrease
drek231 [11]

Answer:

The Cash paid to suppliers was $85,000

Explanation:

Data provided in the question:

Cost of goods sold = $100,000

Decrease in inventory = $5,000

Increase in accounts payable = $10,000

Now,

Cash paid to suppliers will be

= Cost of goods sold - Decrease in inventory - Increase in accounts payable

= $100,000 - $5,000 - $10,000

= $85,000

Hence,

The Cash paid to suppliers was $85,000

8 0
3 years ago
You want your portfolio beta to be 0.90. Currently, your portfolio consists of $4,000 invested in stock A with a beta of 1.47 an
Tatiana [17]

Answer:

31.47%

Explanation:

Total investment = 4000 + 3000 +9000 = $16,000

% of investment in A = 4000/16000 = 25%

% of investment in B = 3000/16000 = 18.75%

% of investment in Asset beta and risk-free asset = 100% - 25% -18.75% = 56.25%

Let the % of investment in asset with beta of 1.74 is A, % of investment in risk free asset is B.

We have the following simultaneous equations:

0.9 = (0.25 x 1.47) + (0.1875 x 0.54) + (A x 1.74) + (B x 0)

A+B = 56.25%

From the first equation, we get A = 24.78%

--> B = 56.25% - 24.78% = 31.47%

*** Note: Portfolio beta is the weighted sum of individual asset betas, according to the proportions of the investments in the portfolio

*** Note: Beta of risk free asset is 0

6 0
3 years ago
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