Answer: c. III only
Explanation:
The marginal propensity to consume (mpc) measures the proportion of a consumers income that is spent.
The marginal propensity to save (mps) measures the proportion of a consumers income that is saved.
It is usually assumed that disposable income is either saved or spent, so mps + mpc = 1
The multiplier is measured as : 1 / MPS or 1 / (1-MPC)
the MPC has a positive relationship with the multiplier.
Answer: d. a two year opportunity cost of $40,000 after leaving her teaching position.
Explanation:
Hi, to answer this we have to analyze the information given.
The difference between teaching modern dance and joining a touring dance company per year is:
- $44,000- $24,000 = $20,000
We simply subtracted the earnings per year at the touring dance company to the earnings per year of teaching modern dance.
The opportunity cost per year is $20,000.
Since she is joining the touring dance company for 2 years, the opportunity cost is:
Dawnell’s decision will result in a two-year opportunity cost of $40,000 after leaving her teaching position. (option d)
Answer:
A. Date Account Title Debit Credit
Insurance expense $30,700
($3000+$32500-$4800)
Prepaid insurance $30,700
B. Date Account Title Debit Credit
Insurance expense $30,700
Prepaid insurance $30,700
Answer:
1.35
Explanation:
Systemic risk is measured by beta. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
14.48 = 3.42 + b(11.6 - 3.42)
14.48 = 3.42 + b8.18
14.48 - 3.42 = 8.18b
11.06/8.18 = 1.35
D. Removes the lien from part of the property when part of the debt has been paid. This clause is used in commercial loans to allow a developer to repay part of the debt to remove the lien on part of the property. It is negotiated for agreed-upon payments to free multiple parcels of property separately to encourage development.
