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strojnjashka [21]
3 years ago
11

1. The marginal propensity to consume I. has a negative relationship to the multiplier. II. is equal to 1. III. represents the p

roportion of consumers’ disposable income that is spent. a. I only b. II only c. III only d. I and III only e. I, II, and III 2. Assume that taxes and
Business
1 answer:
Flauer [41]3 years ago
6 0

Answer: c. III only

Explanation:

The marginal propensity to consume (mpc) measures the proportion of a consumers income that is spent.

The marginal propensity to save (mps) measures the proportion of a consumers income that is saved.

It is usually assumed that disposable income is either saved or spent, so mps + mpc = 1

The multiplier is measured as : 1 / MPS or 1 / (1-MPC)

the MPC has a positive relationship with the multiplier.

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belka [17]

Answer and Explanation:

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3 years ago
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Answer:

stimulating economic growth

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Expansionary monetary policies stimulate economic growth by encouraging investments and consumption spending. When the discount rate is reduced, interest rates reduce automatically. Banks will loan out more when they a lot of money in their custody. Expansionary monetary policies are applied when there is a slowdown in economic growth.

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2 years ago
Which of the following actions would be most likely to reduce potential conflicts between stockholders and bondholders?
bagirrra123 [75]

Answer:

C. Including restrictive covenants in the company's bond indenture (which is the contract between the company and its bondholders).  

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One of the major actions that would most likely reduce potential conflicts between stockholders and bondholder is the Inclusion of restrictive covenants in the company's bond indenture (which is the contract between the company and its bondholders).  

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