Answer:
Consumption Function : Relationship between Consumption Spending & Income
Consumption Function Slope = Marginal Propensity Curve (MPC)
Change in Consumption = Change in Income X MPC
Explanation:
Consumption Function is the curve representing relationship between Consumption spending and Income.
C = a + bY ; where :- C = Consumption , Y = Income , a = Autonomous Consumption i.e consumption at 0 level of income , b = MPC i.e additional consumption consumed from additional income = ΔC / ΔY
b = MPC i.e change in C due to additional change in Y = ΔC / ΔY is the slope of Consumption Function
MPC = ΔC / ΔY .
So, change in consumption i.e ΔC = MPC X ΔY
Answer:
$225,000
Explanation:
The cash flow statement is divided into three categories investing, operating and financing. The investing activity refers to those activities which deal in buying and selling for long term asset in cash. The buying is cash outflow while the selling is a cash inflow. So the amount reported under the investing activity is $225,000 as cash inflow.
Answer:
the gross pay of Lloyd is $6,250
Explanation:
The computation of the gross pay is shown below:
= Amount received annually ÷ number of months
= $150,000 ÷ 24
= $6,250
Hence, the gross pay of Lloyd is $6,250
we simply applied the above formula so that the correct value could come
The other things would be irrelavant
Answer:
you owe $43.47 in one month
Explanation:
Daily Interest (for one month) = Balance × APR rate × [number of month / Total month in a year]
Daily Interest = $1800 × 28.99% × 1/12
= $1800 × 0.2899 × 0.0833
= $43.47
Answer: C. $150,000 credit
Explanation:
In the financial statements for year 2, it should be noted that the year 1 retained earnings balance, should be adjusted by $150,000 credit.
The corrections of errors should be treated as the period adjustments before. In this case, the $150,000 overstatement for the cost of goods that was sold in the previous year, will then be credited to the beginning balance of the retained earnings.
Therefore, the correct option is C.
