Answer:
a. 0.60.
Explanation:
Marginal Propensity to Consume is a metric which enables to measure the increase in consumer spending when there is increase in consumer disposable income. The proportion of disposable income with increase in spending is known as marginal propensity to consume.
The correct answer is 0.60. This is calculated by dividing consumption by the spending.
Marginal propensity to consume = $900 / $1,500
Marginal propensity to consume = 0.60.
Answer:
The correct answer is letter "D": straight line.
Explanation:
Utility represents the satisfaction a person receives from the use of a good or service. In case there is a risk-neutral decision-maker, that individual is unlikely to vary the value he or she provides to the use of products to remain in a comfort zone. However, the utility could vary according to satisfaction the good or service provides in different situations.
Thus, if plotted in a graph, <em>the value representing the horizontal axis and the utility the vertical axis, there will be a straight line departing from the horizontal axis parallel to the vertical axis.</em>
Answer:
Explanation:C. $1,000 debit to sales revenue
Answer:
$153,900
Explanation:
Calculation the amount that Plunkett should report in ending inventory on December 31
31 December Ending Inventory=$211,500 - $43,300 - $14,300
31 December Ending Inventory=$153,900
Therefore the amount that Plunkett should report in ending inventory on December 31 is $153,900
Answer:
All commercial banks create credit by advancing loans and purchasing securities. They lend money to the individuals as well as to the businesses out of deposits accepted from the public. The commercial banks are not allowed to use the entire amount of public deposits for lending purposes.