Answer:
The correct answer is: 2,000; 0.4
Explanation:
We can write the initial consumption function as,
C = a + bY
8,000 = a + 10,000b
a = 8,000 - 10,000b
The new consumption function is,
14,000 = a + 20,000b
Putting value of a in this function
14,000 = 8,000 - 10,000b + 20,000b
14,000 - 8,000 = 10,000b
b = 
b = 0.6
Putting the value of b in the initial function,
8,000 = a + 10,000 
0.6
a = 8,000 - 6,000
a = $2,000
The marginal propensity to consume or b is 0.6.
The marginal propensity to save will be
= 1 - 0.6
= 0.4
In some countries with very high inflation rates, citizens tend to spend their money as fast as they receive it in order to keep it from losing any more of its value. Under these conditions, money is said to lack stability
Explanation:
In most situations, two main factors of a high inflation rate are present in a national economy, which in most countries at the very most. Firstly, an increase in consumer spending in comparison to supply could lead to high inflation. The prices rise when more people fought about fewer goods.
Price stability ensures that excessive inflation and deflation are prevented.
Inflation represents an increase in the overall value for money and purchasing power of products and services within an economy over a prolonged period of time. Deflation is a fall over a longer period of time in the overall price cost for goods and services.
Answer: Decision tree
Explanation: A support tool that uses a tree like model for decision making by evaluating the possible consequences by taking into consideration chance event outcomes, resource cost and utility. Largely used in non parametric effective machine, it is a learning modelling technique for regression and classification problems.
Answer:
A. limited details of offer
Explanation:
The offer is strong as it reaches only the persons that are fans and will be more interested in this event. The only particular reason for this offer to fail is that the message won't contain enough information about the event and this will lose the attention of the fans.
Answer:
salespeople personally call on business customers to a far greater extent than they do consumers.
Explanation:
Business to business (B2B) markets differ from Business to consumers (B2C) markets because salespeople personally call on business customers to a far greater extent than they do consumers.
Under the B2B sells its products directly to other businesses such as wholesalers or retailers and not the end consumers.
On the other hand, the B2C market involves businesses selling their goods and services directly to the end consumers or users for personal use.
