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Marat540 [252]
2 years ago
11

If a $1,000 increase in income leads to an $800 increase in consumption expenditures, then the marginal propensity to consume is

?
Business
2 answers:
sp2606 [1]2 years ago
4 0

If a $1,000 increase in income leads to an $800 increase in consumption expenditures, then marginal propensity to consume is 0.8.

Given that a $1,000 increase in income leads to an $800 increase in consumption expenditures.

We are required to find the marginal propensity to consume.

Marginal propensity to consume is the ratio of increase in consumption and the increase in income. It is also known as MPC.

MPC=ΔC/ΔI

ΔC=Change in consumption

ΔI= Change in income.

MPC=800/1000

=0.8

Hence if a $1,000 increase in income leads to an $800 increase in consumption expenditures, then marginal propensity to consume is 0.8.

Learn more about marginal propensity to consume at brainly.com/question/17930875

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Roman55 [17]2 years ago
3 0

The marginal propensity to consume is  0.8.

explanation;

Marginal propensity = change in consumption/ change in income

                                   = 800/1000

                                     = 0.8

In economics, the marginal propensity to eat is defined as the proportion of an aggregate raise in pay that a patron spends at the intake of products and offerings, instead of saving it.

The marginal propensity to shop is the portion of each more greenback of a family's earnings that's saved. MPC is the element of every more dollar of a family's profits that is consumed or spent.

Marginal propensity to eat refers to the proportion of greater income that someone spends in preference to saves. The time period and its formulation are primarily based on observations made by using famed.

Learn more about marginal propensity  here:- brainly.com/question/17930875

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The correct answer is (d) high perceived organizational support.

Explanation:

High perceived organizational support can be defined as an employees' perception of the degree to which the organization or firm they work for values their input and cares for their overall well being.

Stinson has displayed a high level of organizational commitment, illustrated by her willingness to work on multiple geographical locations and over the weekend. Additionally, she exhibits characteristics of high job involvement which refers to an employee's ability to identify herself/himself with her/his job and derive satisfaction from her/his job, this can easily be seen through  Stinson's enthusiastic and unquestionable work ethics.

Therefore,Stinson's assumes that since she has put in so much effort by working across the globe and over the weekends, the organization would be inclined to acknowledge her need for a rest. She anticipates this decision on the basis that the organizations genuinely care about her welfare. We can also safely conclude that she has little if any interest in whistle-blowing since she believes the organization has her best interest at heart.

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4 years ago
A US Multi National Corporation has a contract for a relatively predictable long-term inflow of Japanese yen. The firm decides t
nika2105 [10]

Answer: a natural hedge

Explanation:

Natural hedge is simply a strategy that is used by a company in order to reduce risk and this is done through the investment in the assets that their performance is not positively correlated.

Such companies typically makes revenue in the currency of another country. Since the firm decides to hedge the yen exposure by finding a supplier in Japan and paying for these imports in yen, this hedging strategy is known as natural hedge.

6 0
3 years ago
Fast Co. produces its product through two processing departments. Direct materials are added at the start of production in the C
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Answer

1. Answer for part one and two are added in attachment.

Explanation:

1. For part one , process summary cost is attached in files.

2. Answer for section two is :

Date Title of accounts Total Debit ($) Total Credit ($)

31-Oct Work In Process Inventory - Assembly 1,143,100.00

     Work In Process Inventory - Cutting 1,143,100.00

Download xlsx
<span class="sg-text sg-text--link sg-text--bold sg-text--link-disabled sg-text--blue-dark"> xlsx </span>
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Mark is refinishing an antique china cabinet and has already spent $180 on the restoration. He expects to be able to sell the ca
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He should complete the additional work and sell the cabinet for $360.

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This is because if he is to sell for $100 without completing the additional work, he will be making a loss of $80, having spent $180.

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Therefore, the better option is to complete the additional work and sell for $360.

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As we can see that the demand is increased from 2,000 shirts to 3,000 shirts due to which the company changes its price from $30 per shirt to $35 per shirt.

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