Answer: True
Explanation:
He is planning to use the retained earnings that are the result of the net profit plus the accumulated of the previous year, this with the purpose of not paying interest for the financing of his investment, another way of making an investment and not generating interest is that they are obtained a new financing of capital by the shareholders, which will be capitalized to equity and will not require the payment of interest only from dividends according to the parties but definitely, the only way that an interest or a portion to be paid by part is not generated of investment is what.
Answer:
The correct answer is: 2,000; 0.4
Explanation:
We can write the initial consumption function as,
C = a + bY
8,000 = a + 10,000b
a = 8,000 - 10,000b
The new consumption function is,
14,000 = a + 20,000b
Putting value of a in this function
14,000 = 8,000 - 10,000b + 20,000b
14,000 - 8,000 = 10,000b
b = 
b = 0.6
Putting the value of b in the initial function,
8,000 = a + 10,000
0.6
a = 8,000 - 6,000
a = $2,000
The marginal propensity to consume or b is 0.6.
The marginal propensity to save will be
= 1 - 0.6
= 0.4
Answer:
Explanation:
B C and D have become tools that have been tried.
Deficit spending is a budget/government policy. Its use should be very limited.
Same with Increased Government Spending. FDR was the master at controlled government spending.
Reducing income taxes is another government policy.
So only A is an example of monetary policy. This is a regulation imposed on the Banks by the Federal Reserve.