If a $1,000 increase in income leads to an $800 increase in consumption expenditures, then marginal propensity to consume is 0.8.
Given that a $1,000 increase in income leads to an $800 increase in consumption expenditures.
We are required to find the marginal propensity to consume.
Marginal propensity to consume is the ratio of increase in consumption and the increase in income. It is also known as MPC.
MPC=ΔC/ΔI
ΔC=Change in consumption
ΔI= Change in income.
MPC=800/1000
=0.8
Hence if a $1,000 increase in income leads to an $800 increase in consumption expenditures, then marginal propensity to consume is 0.8.
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Answer: $112
Explanation:
The following information can be gotten from the question:
Growth Rate = 5%
Dividend at end of year,D1 = 5.60
Required return, ke = 10%
Then, the current market value will be:
P0 = De/(ke-g)
= 5.60/(10% - 5%)
= 5.60 / 5%
= 5.60/0.05
= $112
Therefore, the current market value of a share of IBM stock is $112.
Elon musks annual report. It makes the most sense.
Approximately 5% of franchises fail because survey's show about 95% success rate still in business.
Answer:
B. Was a hygiene factor rather than a motivator
Explanation:
The Herzberg theory of motivation identified two factors of motivation, which are the hygiene factor and the motivators.
The hygiene factors include, good pay, job security, fringe benefit etc. These factors doesn't give positive satisfaction or motivators but their absent causes dissatisfaction. on the other hand the motivators give positive satisfactions the motivators includes recognition for one's achievement, responsibility, involvement in decision making, having sense of importance to an organization