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
Crazy boy [7]
3 years ago
8

Suppose two successive levels of disposable personal income increases from $16 to $21 billion and the change in consumption spen

ding between these two levels of disposable personal income is $2 billion, then the MPC will equal _____.
Business
1 answer:
Montano1993 [528]3 years ago
5 0

Answer: 0.4

Explanation: MPC, that is, marginal propensity to consume is used to quantify the consumption induced. As we know that, MPC is calculated as follows :-

MPC\:=\:\frac{Chane\:in\:consumer\:spending}{change\:in\:income}

MPC\:=\:\frac{2}{21-16}

MPC\:=\:\frac{2}{5}

                 = 0.4

You might be interested in
Fiscal policy lags:_________.
lianna [129]

Answer:

d) may be shorter or longer than monetary policy lags.

Explanation:

Remember, the term policy lags refers generally to the lag or length of time between the time when an economic problem is discovered, like increased unemployment, and the extent to which policy solves the economic problem.

From a general perspective this policy lags in fiscal policy may be shorter or longer than monetary policy lags depending on the political and economic environment of the country.

5 0
3 years ago
Ryngaert Inc. recently issued noncallable bonds that mature in 15 years. They have a par value of $1,000 and an annual coupon of
tatuchka [14]

Answer:

$898.54

Explanation:

The Price of the Bonds is equal to the Present Value or Fair Value of the Bonds.

Using the Financial Calculator, Input elements will be as follows :

N = 15

pmt = $1,000 × 5.7% = $57

YTM / i = 6.8%

Fv = $1,000

Pv = ?

Pv = $898.54

The Coupon rate is lower than the market rate thus the Bonds will fetch a lower price.

5 0
3 years ago
Sigma Corporation owns 80% of the stock of Epsilon Corporation, which pays it a dividend of $100,000. Sigma Corporation also own
kvv77 [185]

Answer:

d. $132,000

Explanation:

Sigma Corporation holds the stock of Epsilon Corporation and is subsidiary for the Sigma. The dividend declared by of $100,000 is entirely for the sigma whereas Sigma Corporation also holds 20% of the shares of Intergalactic Corporation. The dividend of $40,000 will be calculated in the dividend amount of Sigma but 20% will be deducted.

$100,000 + $40,000 * 80% = $132,000

6 0
3 years ago
Mariah is single and has a monthly disposable income of $3,200. Her monthly cash outflow is approximately $2,800. Mariah include
Kryger [21]
It is d. <span>Her plan for protecting her assets. In case of an emergency, she should have renters insurance for her apartment.

Mariah has saved $15,000, from which, she will have $10,000 for a house down payment leaving her $5,000. Considering that she has to buy furnishings, her $5,000 will likely be used. Thus, she has to consider her spending.</span>
5 0
3 years ago
What is the type of occupation of densist​
ivann1987 [24]

Answer:

Dentist is an occupation related to dental/tooth disease.

Explanation:

It is an occupation related to dentistry which is in the field of health.

7 0
2 years ago
Other questions:
  • Moral hazard and adverse selection have different timing with respect to the purchase of insurance. in other words, one is of in
    11·1 answer
  • When Alfred Nobel​ died, he left the majority of his estate to fund five​ prizes, each to be awarded annually in perpetuity star
    6·1 answer
  • The management of Kabanuck Corporation is considering dropping product V41B. Data from the company's accounting system appear be
    10·1 answer
  • _______ decreases the number of dollars in the hands of the public and increases the number of bonds in the hands of the public.
    15·1 answer
  • The firm should shut down if the market price is:___________.
    10·1 answer
  • Even though personal selling is the most expensive method of communication on a per-person-reached basis, businesses continue to
    13·1 answer
  • A mother with a sick child accidentally gives her child a fever reducer that is meant for adults, rather than a fever reducer me
    14·1 answer
  • Match the types of goods with their characteristics regarding exclusivity and rivalry. The task is to match the lettered items w
    15·1 answer
  • Question Mode Multiple Choice Question The total interest that accumulates over time on both the principle money deposited and a
    10·1 answer
  • Querrey Incorporated and Ronno Incorporated conduct business in a foreign country that imposes a 3 percent VAT. Querrey produces
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!