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Jlenok [28]
2 years ago
11

Suppose that consumption is $500 and that the marginal propensity to consume is 0.6. If disposable income increases by $1,000, c

onsumption spending will increase by A. $600 B. $ 3,000 C. $1,360 D. $ 3,750 E. $1,666.67
Business
1 answer:
Lynna [10]2 years ago
8 0

Answer:

A. $600

Explanation:

The formula and the computation of the Marginal propensity to consume are shown below:

Marginal propensity to consume =  Change in consumer spending ÷ Change in disposal income

0.6 = Change in consumer spending ÷ $1,000

So, the change in consumer spending is

= $1,000 × 0.6

= $600

Hence, the consumption that is given in the question is not considered. Therefore, ignored it

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Answer:

23.3%

Explanation:

Expected return refers to the anticipated profit or loss of financial investment. Essentially, it's the value of the return that investors anticipate. We can find the expected return by using the formula given below

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Formula

Expected return = Expectedreturn(previous year) + (betaIP x Δ IP) + (betaIR x Δ IR)

Expected return = 12% + (2.5 x 2%) + (1.8 x 3.5%)

Expected return = 23.3%

5 0
3 years ago
Roma and Swain are partners in Roma & Swain Attorneys, LLP, a limited liability partnership. Roma supervises their firm's as
meriva

Answer:

b. Roma and Taylor

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3 years ago
Quartz Instruments had Retained Earnings of $150,000 at December 31, 2018. Net income for 2019 was $95,000, and dividends for 20
Svet_ta [14]

Answer:

The answer is B. $210,000

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Therefore amount of Retained Earnings at December 31, 2019 is

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8 0
2 years ago
Suppose that you were born in 1998. also, suppose that your mother received a $100 baby shower gift at your birth. how much woul
Aliun [14]
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7 0
3 years ago
It is unethical to ask employees to work longer hours to get a project completed on time.
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No.  There are times where some projects are so important that they need to be finished as soon as possible.  You have to make sure that employees will be compensated for their work when they do so.  Make sure that the company follows proper guidelines in doing overtime.

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