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aliya0001 [1]
3 years ago
14

Here is a consumption function: C = C0 + MPC(Yd). If consumption is $2,000, MPC =0.75, and disposable income is $2,000, what doe

s autonomous consumption equal?
Business
1 answer:
Hunter-Best [27]3 years ago
8 0

Answer:

$500

Explanation:

$2,000 = Co + 0.75 x $2,000

$2,000 = Co + $1,500

Co = $500

Autonomous consumption is consumption that would occur even if a person earns zero income. This consumption isn't dependent on the level of income.

MPC is the marginal propensity to consume. It represents the proportion of disposable income that is spent on consumption.

Disposable income is income less taxes.

I hope my answer helps you

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Wal-Mart was one of the most successful firms of the 1970s and 1980s. Much of Wal-Mart's success can be credited to its expansio
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Answer:

The correct answer is letter "D": Wal-Mart employed a preemptive strategy.

Explanation:

Game Theory is a branch of Economy that studies the decisions in which an individual could succeed if he or she takes into account the decisions of the rest of the participants involved in the event. Game Theory has also been applied for subjects such as <em>Mathematics, Managements, Psychology </em>or <em>even Biology. </em>

In the game theory, the Preemptive Strategy is implemented when individuals take a step before other participants in an attempt of having a favorable outcome of the situation. They lead the event using creativity. Thus, <em>Wal-Mart used the preemptive strategy by opening stores in small towns that supported only one discount store.</em>

8 0
3 years ago
When Lisa purchased her house, the mortgage lender required her homeowner's insurance to cover 100% of the loan amount. After ma
SOVA2 [1]

A) The cost to rebuild the house

This is due to the fact that there is no outstanding loan amount since the mortgage has been paid off.

8 0
3 years ago
Titan State Bank offers to pay you 6% interest, compounded quarterly. The 6% interest rate is known as the: ANSWER Unselected re
VARVARA [1.3K]

Answer:

nominal interest rate

Explanation:

Titan State Bank offer of 6% interest is a quoted interest rate. A quoted interest rate is also annual payable rate (APR)  and in this case, it is compounded quarterly. Additionally, since this quoted rate does not take into account the inflation rate, it is referred as a Nominal interest rate. However, when that nominal rate of 6% is adjusted for inflation, the rate you earn is the Real interest rate which you calculate using the Fisher equation.

3 0
4 years ago
Francois deposits $350.00 in a savings account. The account pays an annual interest rate of 4.3%. He makes no other deposits or
neonofarm [45]

Answer:

$3.7625

Explanation:

Simple interest is calculated as

Interest = P x r x t

Where

p = principal amount.. $350

r= interest rate: 4.3% or 0.043

t= time in years: 3 months or 3/12 =0.25 years

Interest = $350 x 0.043 x 0.25

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HELP ASAP...Just tap the photo to read the problem
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Answer:

Red Dear

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