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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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Compute the present value of an $1,350 payment made in nine years when the discount rate is 11 percent. (Do not round intermedia
xeze [42]

Answer:

<h2>The present value of PV in this case is $527.76 approximately.</h2>

Explanation:

The mathematical or accounting formula of Present Value(PV)=\frac{FV}{(i+r)^{n} } where FV denotes the future cash payment to be made,r represents the discount rate and n is the number of years in which the future payment has to made.Here,the future cash payment of FV is given as $1350,the discount rate is 11% or 0.11 and the number of years in which the FV has to be paid is 9 years.

Hence,PV in this case=\frac{1350}{(1+0.11)^{9} }=\frac{1350}{(1.11)^{9} }=\frac{1350}{2.5580 }=527.76 dollars approximately

Therefore,based on the information given the PV in this case is $527.76 approximately.

3 0
3 years ago
Lester lent money to The Corner Store by purchasing bonds issued by the store. The rate of return that he and the other lenders
Alexxx [7]

Answer:

The correct answer is letter "E": cost of debt.

Explanation:

The cost of debt is the interest a company pays on its borrowings. It is expressed as a percentage rate. Also, the cost of debt can be calculated as a before-tax rate or an after-tax rate. Before interest is deductible for income taxes, the cost of debt is usually expressed as an after-tax rate.

7 0
3 years ago
What is the objective of the last step in the ethical decision-making framework? Multiple Choice to brainstorm any alternative c
I am Lyosha [343]

Answer:

B. To weigh the various alternatives and choose a course of action

Explanation:

The major steps involved in a proper decision-making process include; Identifying the problem, understanding the problem by obtaining the necessary information, developing alternatives, choosing the best alternative that would address the ethical issue at hand, and implementing the best alternative.

The aim of the entire process of decision-making would be faulted if at the end, a course of action is not taken. The decision made at the end of the day, should address the initial concern raised. This decision would also need to be reviewed to ensure that it is the right step.

Determining ways to maximize profit for the company may not be the issue at hand, as several factors could inform the decision making process.

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Kimbeth Manufacturing uses a process cost system to manufacture dust density sensors for the mining industry. The following info
Lena [83]

Answer:

$6 per unit

Explanation:

using the weighted average method:

units completed 92,000 x 100% (both materials and conversion)

ending work in progress 24,000

  • materials 90% completed = 21,600
  • conversion 40% completed = 9,600

equivalent unit conversion costs = total conversion costs / total equivalent units of conversion

  • total conversion costs = $20,320 + $15,240 + $$182,880 + $391,160 = $609,600
  • total equivalent units of conversion = 92,000 + 9,600 = 101,600

equivalent unit conversion costs = $609,600 / 101,600 units = $6 per unit

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Answer:

cash A/C•••••••••••Dr.

To,Rai´s A/C

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