Answer:
MPC = 0.8
MPC = 0.2
Explanation:
Marginal propensity to consume is the proportion of an increase in income that is spent on consumption.
Marginal propensity to consume = increase in consumption / increase in disposable income
Marginal propensity to save is the proportion of an increase in income that is saved.
Marginal propensity to save = increase in savings / increase in disposable income
Disposable income is either consumed or saved. so,
Marginal propensity to consume + marginal propensity to save = 1
Marginal propensity to consume = $64 / $80 = 0.8
Marginal propensity to save = $16 / $80 = 0.2
I hope my answer helps you
Answer:
guides investment activities to maximize after-tax returns over the long term for an acceptable level of risk
Explanation:
Given that the purpose of Tax planning is to ensure that there is tax efficiency for the firm, in an after-tax evaluation, the goal of the firm in terms of returns or profits is toll achieved.
Hence, in this case, the correct answer to the question is that TAX PLANNING "guides investment activities to maximize after-tax returns over the long term for an acceptable level of risk."
Answer:
The net income will decrease and also the total assets will also decrease
Explanation:
Here, we want to know the combined effect on net income and total assets of company that made a decision of distributing assets as a property dividend.
As the asset value is down the entry is asset (credit) and loss on asset (debit)
This will effect the net income as it will come down and total assets value also come down
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