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olga2289 [7]
3 years ago
11

Last year, Linus earned a salary of $25,000 and he spent $24,000, thus saving $1000. At the end of the year, he received a bonus

of $1000 and he spent $500 of it, saving the other $500. What was his marginal propensity to consume?
Business
1 answer:
Evgen [1.6K]3 years ago
8 0

Answer:

0.5

Explanation:

Marginal propensity to consume is the proportion of the increase in disposable income spent on consumption.

Marginal propensity to consume = change in consumption/ increase in disposable income

$500 / $1000 = 0.5

I hope my answer helps you

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3 0
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Activity-based costing systems:
Harlamova29_29 [7]

Answer:

The correct answer is letter "B": Often reveal products that were under- or over-costed by traditional costing systems.

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In a small, closed economy, national income (GDP) is $400.00 million for the current year. Individuals have spent $150.00 millio
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3 years ago
The Smiths are purchasing a completely furnished cottage on a lake. They have obtained a deed of trust loan to cover the price o
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6 0
3 years ago
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