1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
tigry1 [53]
3 years ago
12

In a simple, closed economy (no government or foreign sector), disposable income increases from $2,000 to $3,000. If consumption

increases from $1,500 to $2,100, the marginal propensity to save is: 0.40. $400. 0.80. $600.
Business
1 answer:
tamaranim1 [39]3 years ago
8 0

Answer:

The marginal propensity to save is 0.4

Explanation:

The marginal propensity to save is 1 - marginal propensity to consume.

The marginal propensity to consume is the proportion of an increase in income that the consumers will spend from this increased income and the marginal propensity to save is the proportion of the increase in income that will be saved.

The marginal propensity to consume (MPC) = Change in consumption / change in income

The MPC = (2100 - 1500) / (3000 - 2000)  =  0.6

Thus, the marginal propensity to save is 1 - 0.6 = 0.4

You might be interested in
What type of stores rely on their large size and very deep selection to try to dominate the market?
andrew-mc [135]
Power retailers are the stores that rely on their large size and very deep selection to try to dominate the market. 
Specialty stores are small, so you can eliminate that option immediately. Department stores are usually found within another store, so that's not correct too. Discounters don't have a very deep selection, they usually sell a lot of various things. Anchor stores are found within malls, so that's incorrect too. 
8 0
3 years ago
What is the effect on market when suppliers under invest in their businesses​
yanalaym [24]

Answer:

  • Low supply
  • Scarcity
  • Low economic growth

Explanation:

When suppliers under invest in their business, they will end up having the capacity to only produce less than the market requires. Should this happen, supply will be reduced in the market which would lead to relative scarcity all else being equal.

For economic growth to happen, there must be increasing production in an economy so if suppliers are under investing and production is low, there might be low or no economic growth.

8 0
3 years ago
Which of the following statements about penetration pricing is most accurate? Multiple Choice A) Penetration pricing is more eff
scoundrel [369]

Answer: Option A

     

Explanation: In simple words, it refers to the pricing strategy in which the firm initially charge a lower price of product to attract the customers and make a strong position in the market.

Hence it is effective only on those markets where the customer gives value to price more than the quality and assurance he is getting from the existing product.

Thus, from the above we can conclude that the correct option is A.

5 0
3 years ago
A(n) ____________ portfolio maximizes return for a given level of risk, or minimizes risk for a given level of return.
Anastaziya [24]

An efficient portfolio maximizes return for a given level of risk or minimizes risk for a given level of return.

Having an efficient portfolio when preparing a financial planning is undeniably important as this helps you in your decision-making; whether you engage in something while knowing the specific risk of doing that certain action.

8 0
3 years ago
If a firm produces a return on assets of 15 percent and also a return on equity of 15 percent, then the firm:
dem82 [27]

Answer:

No debt of any kind.

Explanation:

Then the firm has “no debt of any kind” because the company has the equity multiplier ratio is 1.

We have given the return on assets is 15 % and the same return is on the equity that is 15%.

Thus, the equity multiplier ratio can be calculated by dividing the total assets / total equity.

Equity mulitplier ratio = Total Assets / Total equity.

8 0
3 years ago
Other questions:
  • An audit client is creating a​ Web-based sales ordering system for customers to purchase products using personal credit cards fo
    7·1 answer
  • At which stage of the new product development process is a physical product first​ developed?
    15·1 answer
  • Suppose that the price of a bottle of soda is $1 each. Larry is willingto pay $2 for the first bottle, Alan is willing to pay $1
    11·1 answer
  • On May 9, 2013, Calvin acquired 250 shares of stock in Aero Corporation, a new startup company, for $68,750. Calvin acquired the
    7·1 answer
  • Which one of the following is not a part of the business case for why companies should act in a socially responsible manner? A.
    10·1 answer
  • In a perfectly competitive market, a firm's short-run supply curve is:_________.
    12·1 answer
  • You have been asked to assist a retail company. It sells clothing and would like to have a Point of Sale computer installed to h
    8·1 answer
  • Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct
    9·1 answer
  • MC Qu. 159 Copy Center pays an average wage... Copy Center pays an average wage of $11 per hour to employees for printing and co
    9·1 answer
  • SEE
    10·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!