From this, you can tell Ana's marginal propensity to consume (MPC) is 0.80, and marginal propensity to save (MPS) is 0.20.
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What is marginal propensity to consume?</h3>
The marginal propensity to consume (MPC), a metric of induced consumption used in economics, predicts that an increase in available cash would lead to an increase in individual consumer spending. A person's propensity to consume is how much of their discretionary income they spend on consumption. The MPC determines a person's extra spending. Due to the fact that some short-term consumption is unaffected by changes in income, the MPC in the standard Keynesian model is lower than the average propensity to spend (APC). Since consumers cut back on their savings to maintain consumption, income losses do not cause a fall in spending.
Mathematically, it must always be true that:
Therefore, it must also be true that the: MPC = 1 - MPS.
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Answer: Option A
Explanation: In simple words, mutually exclusive projects refers to those projects which cannot be taken over by a firm together, that is, if there are two mutually exclusive projects available in the market than the firm can opt only one and has to let go the other.
These projects might have positive present values of future cash inflows but while computing together they decrease the overall value of the organisation. However there could be other reasons also behind not taking both projects such as lack of capital or technical infrastructure to handle both projects.
Thus, from the above we can conclude that the correct option is A.
Answer: (B) The total product offering
Explanation:
According to the question, Darius is evaluating the total offering of the products by comparing each products such as bedside table, beds and the dresses with the other brands.
By comparing one brand with the other brands, he evaluating the products price, warranty and the reputation.
The total product offering is basically defined as the amount of the total products offered as the final output. The consumers are evaluating each product before busying the product.
Therefore, Option (B) is correct.