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Paul [167]
3 years ago
9

Suppose disposable income increases by $2,000 . As a result, consumption increases by $1,500 . Answer the questions based on thi

s information. Where appropriate, enter your answer as a decimal rather than as a percentage.
(a) The increase in savings resulting directly from this change in income is $ ____
(b) The marginal propensity to save (MPS) is The marginal propensity to consume (MPC) is ____
Business
1 answer:
antiseptic1488 [7]3 years ago
7 0

Answer:

$500

0.25

0.75

Explanation:

It is assumed that disposable income is either saved or consumed.

Disposable income = Consumption + Savings

Savings = Disposable income - Consumption

= $2000 - $1500 = $500

MPS = Savings ÷ Income

= 500 ÷ 2000 = 0.25

MPC = Consumption ÷ Income

= 1500 ÷ 2000 = 0.75

MPS + MPC = 1

Alternatively: MPC = 1 - MPS = 1 - 0.25 = 0.75

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During 2020 the DLD Company had a net income of $85,000. In addition, selected accounts showed the following changes: Accounts R
zmey [24]

Answer:

$84,500

Explanation:

Data provided as per the question

Net income = $85,000

Depreciation expenses = $1,500

Accounts receivables = $3,000

Increase in accounts payable = $1,000

The computation of amount of cash provided by operating activities is given below:-

Amount of cash provided by operating activities = Net Income + Depreciation expenses - Accounts receivables + Increase in accounts payable

= $85,000 + $1,500 - $3,000 + $1,000

= $84,500

Therefore, for computing the Amount of cash provided by operating activities we simply applied the above formula.

5 0
3 years ago
Competency: Communication Concepts
Nadusha1986 [10]

Answer:

A. His sending note was a thoughtful gesture

8 0
3 years ago
Iron Man Foundry produces multiple products, one of which is casting a hose nozzle. The daily demand for these nozzles is 1,000
Alex777 [14]

Answer: 0.48 minutes

Explanation:

Takt time = Net time available / Daily demand

Net time available is number of minutes in a shift so:

= 8 hours * 60 minutes

= 480 minutes

Daily demand = 1,000 units

Takt time = 480 / 1,000

= 0.48 minutes

4 0
2 years ago
Suppose that when the price of peanut butter falls from $2 to $1 per jar, the quantity of jelly purchased rises from 14 million
yan [13]

Answer:

-0.20

Explanation:

Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.

If cross price elasticity of demand is positive, it means that the goods are substitute goods.

Substitute goods are goods that can be used in place of another good.

If the cross-price elasticity is negative, it means that the goods are complementary goods.

Complementary goods are goods that are consumed together

Cross Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price  

Midpoint change in quantity demanded = change in quantity demanded / average of both demands

change in quantity demanded = 16 million - 14 million = 2 million

Average = (16 million + 14 million) / 2 = 15 million

2 / 15 = 0.133

midpoint change in price = change in price / average of both price

change in price = 1 - 2 = - 1

average of price =(2 + 1) / 2 = 1.5

-1/1.5 = -0.67

0.1333 / -0.67

7 0
3 years ago
Assume the reserve requirement is 10%. First National Bank received a deposit of $5,400. If there no slippage, how much could th
natta225 [31]
<span>Reserves fall by $1,000, checkable deposits fall by $10,000, and the monetary base remains uncharged.</span>
4 0
3 years ago
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