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Ivanshal [37]
2 years ago
15

An increase in spending of $25 billion increases real gdp from $600 billion to $700 billion. The marginal propensity to consume

must be?
Business
1 answer:
maksim [4K]2 years ago
5 0

An increase in spending of $25 billion increases real gdp from $600 billion to $700 billion. The marginal propensity to consume must be "4".

<h3>What do you mean by Marginal Propensity to consume?</h3>

The marginal propensity to consume is refers to as the proportion of any change in income that is spent on consumption.

In economics, this term is used to refer to the measurement made in order to determine consumption when the rent is increased by one unit. This measurement is nothing more than a mathematical relationship to calculate how people invest in consumption or save the income that is increased.

Calculation:

MPC=\frac{change in consumption}{change in income} \\MPC=\frac{100}{25} \\MPC=4

Learn more about Marginal Propensity to consume, refer to the link:

brainly.com/question/19089833

#SPJ4

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Minor company installs a machine in its factory at the beginning of the year at a cost of $135,000. the machine's useful life is
sveticcg [70]

To determine what the depreciation of an asset using straight line method, the formula to be used is:

(Initial cost of machine – salvage value) divided by estimated useful life


So in this problem:

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Estimated Useful Life – 5 years

Plug that in the formula


Annual depreciation = ($135000 - $15000) / 5

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The first year depreciation for the machine is $24000 because the company bought it in the beginning of the year. (So there is no need to divide this by 12 months)

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3 0
3 years ago
Pure monopoly refers to_____. rev: 05_15_2018 Multiple Choice
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Answer:

The correct answer is option c.

Explanation:

Pure monopoly refers to a market where there is a single producer selling a product with no close substitutes. Such type of market is very rare.  

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No close substitutes, single seller and barriers to entry are essential conditions for a pure monopoly to exist.

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Ms. Liu shares her web data with you, which shows that she has an average of 500 daily page views during the weekdays, and an av
irakobra [83]

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