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
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

You might be interested in
Cortina Company accumulates the following adjustment data at December 31. Indicate (1) the type of adjustment (prepaid expense,
romanna [79]

Answer:

Cortina Company

Indication of the type of adjustment and the status of the accounts before the adjustment:

Type of adjustment (prepaid           Status of the accounts before the

expense, accrued revenue, etc.)      adjustment:

a. Usage adjustment                        Supplies Overstated by $1,200

b. Accrued Revenue                        Service Revenue understated by $700

c. Accrued Expense                         Interest Expense understated by $300

d. Earned Revenue                          Rent Revenue understated by $1,100

                                                          and Deferred Revenue overstated by

                                                          the same amount.

Explanation:

Cortina Company must recognize all revenue and expenses, whether cash has exchanged hands or not, provided they have been earned or incurred within the stated accounting period.  This is in accordance with the accrual concept and the matching principle of generally accepted accounting principles.

5 0
3 years ago
On January 1, 2018, Moonbucks, Inc., received $79,380 and agreed to pay $100,000 in 3 years on December 31, 2020. The market rat
solniwko [45]

Answer:

Explanation:

Interest expense refers to charges paid for borrowing money. It is the money that a lender charges  borrower for borrowing money from him. In the income statement, it represents interest to be paid on borrowings such as bonds, loans, convertible debt or lines of credit. It is calculated as product of the interest rate times the outstanding principal amount of the debt.

Given that:

Moonbooks received $79,380 =  principal amount of debt (P)

The interest rate (r) = 8% annually = 0.08.

Interest expense payable for 2018 (first year) = P × r = $79380 × 0.08 = $6350

For the second year i.e 2019 The principal amount of debt = $79380  + $6360 = $85730

Interest expense payable for 2019 (second year) = P × r = $85730 × 0.08 = $6858

6 0
3 years ago
Which of the following will probably earn a higher level income?
aleksley [76]

In my opinion D. a female accountant with a masters degree in business administration, will earn a higher level of income. <em>Explanation- if she has a masters then they may accept her in jobs other people are not able to get without a masters, they may also pay her higher because of it.</em>


<h3>Hope this will help- for more help follow me, or contact me</h3>
7 0
3 years ago
Read 2 more answers
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credi
borishaifa [10]

Answer:

Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $330,000. During 2021, Halifax sold merchandise on account for $11,800,000. Halifax's merchandise costs is 70% of merchandise selling price. Also during the year, customers returned $345,000 in sales for credit, with $191,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year.

Explanation:

Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $330,000. During 2021, Halifax sold merchandise on account for $11,800,000. Halifax's merchandise costs is 70% of merchandise selling price. Also during the year, customers returned $345,000 in sales for credit, with $191,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year.

6 0
2 years ago
What are things you can do to manage the risks in your life to reduce any financial losses?
meriva
Spend carefully use discounts monitor your spending create list on how much you spend etc.
5 0
3 years ago
Read 2 more answers
Other questions:
  • A traditional buyer-seller relationship is defined as "a long-term relationship between an owner and a contractor in which the c
    5·1 answer
  • The management of a telecommunications company informs the members of its sales team that if they continue to underperform, the
    12·1 answer
  • ​May, Inc. had the following transactions in​ 2019, its first year of​ operations: bullet Issued 20 comma 000 shares of common s
    10·1 answer
  • If a company is concerned about lending money to a risky customer, which one of the following would it not want to do? Require t
    10·1 answer
  • Write a summary of the following passage: full-time employees earn vacation days at the rate of one day per month, or twelve day
    6·1 answer
  • Ray's Sounds has accumulated the following cost and market data on March 31: Cost Data Market Data iPods $24,000 $20,400 Cell ph
    14·1 answer
  • Which cell organelle is most similar in function to an organism’s nervous<br> system? true or false
    10·1 answer
  • Click on my profile picture and open image <br><br> Get nae naed
    9·1 answer
  • During the first month of operations, a manufacturer incurs the following costs related to activities within its factory:
    10·1 answer
  • What is the coordinating mechanism in a market system?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!