1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Jlenok [28]
3 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]3 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

You might be interested in
How would you expect each of the following to affect the economy-wide demand for U.S. money (currency)? a. Competition among bro
Anna007 [38]

Answer:

Market interest rate is also known as nominal interest rate. The nominal interest rate is sum of real interest rate and inflation rate. Fed try to control the monetary condition and real interest rates by manipulating money supply. These interest rates also affect the demand of money in market.

Part (a)

When commission of brokers decreases then buying and selling of stocks becomes easier and cheaper and people would transact in more and more stocks which will decrease the demand of money as liquidity of stock has increased.

Part (b)  

When grocery store starts accepting credit cards then people would need to carry less cash and demand of money will decrease.

Part (c)

As financial investors are now worried about riskiness of stocks so they will decrease their investment in stocks and prefer holding more money so demand of money will increase.

5 0
3 years ago
Which of the following is an example of traditional management?
arsen [322]
Not sure what the choices are, but traditional management is where goals and objectives are created at the top and employees are in charge of meeting them and for the quality of the product. This is opposed to a quality - focused management style which is more collaborative with customers to achieve continuous improvement of your product and/or service.
3 0
3 years ago
Suppose at the going wage rate of $20 per hour, firms can hire as many hours of janitorial services as they desire. If any firm
Reika [66]

Answer:

d. Supply is perfectly elastic.

Explanation:

Perfectly elastic supply is when a change in price causes supply to fall to zero.

The supply curve is usually an horizontal line.

I hope my answer helps you

3 0
3 years ago
Select the correct answer.
kati45 [8]

Answer:

Consumer Bill of Rights

Explanation:

5 0
3 years ago
Unencrypted information is:
erica [24]
C. Likely to be stolen & abused
6 0
3 years ago
Read 2 more answers
Other questions:
  • Which of the following is the best subject line for an e-mail sent to co-workers about rescheduling a team meeting?
    14·2 answers
  • Henry, a salesperson, calls a prospective buyer in an attempt to sell his company's new air conditioner. the buyer indicates tha
    11·1 answer
  • Eileen, a manager at an international restaurant chain, wants to know if it will be most cost effective to buy 1,000 pounds of s
    7·1 answer
  • There are benefits to having only permanent employees at a company, and there are benefits to replacing such employees with temp
    9·2 answers
  • On December 29, 2019, Patel Products, Inc., sells a delivery van that cost $20,000. After recording the entry to bring the accum
    13·1 answer
  • ________ is used heavily when introducing a new product category. the objective is to build primary demand.
    11·1 answer
  • Income Inequality, Poverty, and Discrimination affect the economy. Discuss their impact on the economy and what should be done b
    15·1 answer
  • Phone regularly prices its products at cost plus a 40 percent markup for profit. Smart prices its sales at cost plus a 20 percen
    10·1 answer
  • What actions might be taken to reduce the risk associated with a loan to start the business? Give examples please​
    14·1 answer
  • A homebuyer took out a $350,000 30-year fixed rate loan at 4.5% interest with a monthly payment of $1,773.40. After making two m
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!