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KonstantinChe [14]
1 year ago
8

suppose the mpc in an economy is 0.95. the apc is initially 0.55 and disposable income is $6 billion. if disposable income incre

ases to $18 billion, what is the new level of saving?
Business
1 answer:
gregori [183]1 year ago
5 0

The new level of saving is 12.8 billion for the mpc economy.

Setting a baseline consumption rate will be the first step. By dividing consumption by income, which results in 0.9 = C / 4 billion and a consumption value of 3.8 billion for an income of 4 billion, you can get the average inclination to consume.

Calculate the change in consumption, on the other hand. The marginal propensity to spend is determined by dividing the change in consumption by the change in income, keep that in mind. You obtain 0.9 = C/10bn as a result, changing your income by 9bn. Consumption rises by 9 billion as a result, reaching a new record of 9 plus 3.8 billion, or 12.8 billion.

Learn more about income at

brainly.com/question/16055983?referrer=searchResults

#SPJ4

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The ________ states that the opportunity cost of producing a good always rises as one produces more of it. group of answer choic
quester [9]

The <u>law of increasing relative cost </u>states that the opportunity cost of producing a good always rises as one produces more of it.

According to the law of increasing costs, production eventually loses efficiency as it grows. The labor expenses for each additional item will increase, for instance, if increased production requires overtime work from your workforce.

Opportunity cost is the value of other commodities or services you must forgo in order to get your desired item. The term "cost" as used by economists often refers to opportunity cost. Cost is frequently mentioned in conversations or on the news.

According to the law of increasing opportunity cost, the cost of manufacturing the next unit rises as you keep up with the production of a given good.

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6 0
1 year ago
I need to write a balance sheet but I am having trouble with the format. can anyone please help?
vichka [17]
Answer & Explanation:
Most balance sheets are arranged according to this equation:

Assets = Liabilities + Shareholders’ Equity

The equation above includes three broad buckets, or categories, of value which must be accounted for:

1. Assets

An asset is anything a company owns which holds some amount of quantifiable value, meaning that it could be liquidated and turned to cash. They are the goods and resources owned by the company.

Assets can be further broken down into current assets and noncurrent assets.

- Current assets are typically what a company expects to convert into cash within a year’s time, such as cash and cash equivalents, prepaid expenses, inventory, marketable securities, and accounts receivable.
- Noncurrent assets are long-term investments that a company does not expect to convert into cash in the short term, such as land, equipment, patents, trademarks, and intellectual property.

2. Liabilities

A liability is anything a company or organization owes to a debtor. This may refer to payroll expenses, rent and utility payments, debt payments, money owed to suppliers, taxes, or bonds payable.

As with assets, liabilities can be classified as either current liabilities or noncurrent liabilities.

- Current liabilities are typically those due within one year, which may include accounts payable and other accrued expenses.
- Noncurrent liabilities are typically those that a company doesn’t expect to repay within one year. They are usually long-term obligations, such as leases, bonds payable, or loans.

3. Shareholders’ Equity

Shareholders’ equity refers generally to the net worth of a company, and reflects the amount of money that would be left over if all assets were sold and liabilities paid. Shareholders’ equity belongs to the shareholders, whether they be private or public owners.

Just as assets must equal liabilities plus shareholders’ equity, shareholders’ equity can be depicted by this equation:

Shareholders’ Equity = Assets - Liabilities

— Courtesy of Harvard Business School

I hope this helped! :)
6 0
3 years ago
Among the following, who is not a Management expert? Peter F. Drucker Mc Kinsey Albert Grahmbell Elton Mayo
monitta

Answer:

Elton mayo should be the answer

7 0
2 years ago
What are the two methods used to translate financial statements and how does the functional currency play a role in determining
laiz [17]

Answer:

The two methods of translating financial statements are the current rate method/closing rate method and the temporal method

Explanation:

Functional currency simply means the main currency used by a business. it could also be defined as the primary currency used in the economic environment in which a business operates as in where it generates most of its cash and also spends it

Functional currency determines to a large extent the method used in translation of financial statements. When there is no difference between local currency and foreign currency, current rate method is used and vice versa for temporal rate method

please find attached from Advanced Accounting

Hoyle, J., Schaefer, T., & Doupnik, T. (2015)

8 0
3 years ago
A high coupon bond is likely to be called by the issuing firm if (a) required yields rise. (b) it has a high call premium. (c) i
monitta

Answer:

Correct option is D

Explanation:

Required yields falls.

6 0
3 years ago
Read 2 more answers
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