Assuming that you received $500 for your birthday, spent $400 of it, and saved the remaining $20. There are 20 MPs, or marginal propensities to save.
MPS= change in savings/change in income. A change in income of $500 changes savings by $20
<h3 /><h3>Why Do People Have a Marginal Propensity to Consume?</h3>
- The opposite of MPS is the marginal propensity to consume (MPC). The link between income and consumption is quantified with the aid of MPC.
- By dividing the change in spending by the change in income, one can determine their marginal propensity to consume.
- In order to calculate how much spending rises for every dollar of increased income, MPC measures this relationship.
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Answer:
a profitable opportunity involving three separate currency exchange transactions.
Explanation:
A triangular arbitrage occurs when the exchange rate between 3 currencies do not match up.
Answer:
True
Explanation:
Consumer price index measures the changes in price level of a basket of goods.
If consumer price index falls if means price level has fallen , goods become cheaper and the same amount of money can buy more quantities of goods and services.
Conversely if consumer price index rises, price level has increased, goods and services become more expensive and more amount of money would be needed to maintain the same level of consumption.
CPI is calculated as cost of basket of goods in a given year / cost of basket of goods in a base year
I hope my answer helps you
Answer:
$6.65
Explanation:
Annual Interest = 21%
Monthly Interest = 21%/12 = 1.75%
So the monthly interest that will be added to Ryan's account would be
Monthly Interest = $380 x 1.75%
Monthly Interest = $6.65