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VikaD [51]
3 years ago
5

People decide to save 20 percent of their incomes. The value of the marginal propensity to consume is ________ and the value of

the spending multiplier is ________.
Business
1 answer:
DerKrebs [107]3 years ago
3 0

Answer: 0.8; 5

Explanation:

From the question, we are informed that people decide to save 20 percent of their incomes. We should note that the addition of the marginal prospensity to consume(MPC) and the marginal prospensity to save(MPS) will be equal to 1.

Therefore, the value of the marginal propensity to consume will be:

= 1 - 20%

= 1 - 0.2

= 0.8

The value of the spending multiplier will be calculated as:

= 1/MPS

= 1/0.2

= 5

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3 years ago
Booher Book Stores has a beta of 1.0. The yield on a 3-month T-bill is 3% and the yield on a 10-year T-bond is 6%. The market ri
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Answer:

Cost of equity =  10.5%

Explanation:

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3 0
3 years ago
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Answer:

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Explanation:

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Answer:

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Answer:

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