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insens350 [35]
3 years ago
10

The greater the value of the marginal propensity to consume A. the greater the value of autonomous consumption. B. the greater t

he value of the marginal propensity to save. C. the greater the value of the multiplier. D. the smaller the value of the multiplier.
Business
2 answers:
Nataliya [291]3 years ago
6 0

Answer:

C. the greater the value of the multiplier

Explanation:

  • The marginal propensity to consume is the metric that quantifies the induced consumption and increases in the increases in consumer spending and thereby increasing the disposable income. This disposable income that the customer has is called as the propensity to consume and  
  • An example of the household gets one extra dollar of disposable income, and has a marginal propensity to consume as 0.65, the dollar then household can spend 65 cents to save 35 cents.
  • The MPC determines the value of the multiplier. The higher the MPC, the more is the values of the multiplier effect and vice versa.
just olya [345]3 years ago
4 0

Answer:

C. the greater the value of the multiplier

Explanation:

As we know that

The formula to compute the Government spending multiplier is shown below:

Government spending multiplier = 1 ÷ (1 - marginal propensity to consume)

where,

Marginal propensity to consume refers to the change in consumption with regard to the change in income

So if the value of the marginal propensity to consume is higher than there would also increase in the value of the multiplier and in the same proportion it would be greater

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5 0
2 years ago
If the inflation rate unexpectedly rises:_______.a. borrowers gain at the expense of lenders.b. lenders will gain at the expense
Alborosie

Answer:

a. borrowers gain at the expense of lenders

Explanation:

Inflation refers to the sustained increase of the price of a commodity over a period of time.

It can be caused due to increase in production cost or increased demand of a good or service.

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7 0
3 years ago
Read 2 more answers
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aalyn [17]

Answer:

A. 40,000

Explanation:

Data provided

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= 39,000 + 17,000 - 16,000

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6 0
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Roman55 [17]

the price of summer cabins. as summer​ approaches, the equilibrium price of rental cabins increases, and the equilibrium quantity of cabins rented increases increase in demand.

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Price movements cause equilibrium movement along the supply curve. Such a movement is called a change in supply. Like changes in demand, changes in supply do not shift the supply curve. By definition, it is moved along the supply curve.

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brainly.com/question/517289

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1 year ago
Defining a business in terms of goods and services rather than in terms of the benefits customers seek is called _____.
viva [34]
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