Answer:
C. A rise in saving does not change aggregate demand.
Explanation:
Say's law states that the production of goods creates its own demand.
According to Say's law, in a money economy, a rise in saving does not change aggregate demand because total expenditure amount does not change, it only moves from consumption category to the investment category in equal proportion.
Also, disposable income stays constant and consumption decreases, while savings increases.
Savings = disposable income - consumption.
The supply and demand of the food
Answer:
Morgan’s earnings per share for 2015 is $6
Explanation:
To compute the earning per share, we have to use the formula which is shown below:
Earning per share = (Net income - declaration of preference dividend) ÷ (Average common shares outstanding)
= ($600,000 - $60,000) ÷ (90,000 outstanding shares)
= $6
Common dividends declared is not considered. Hence, it is not taken in the computation part.