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hram777 [196]
3 years ago
14

The debt payments-to-income ratio is:

Business
1 answer:
Phoenix [80]3 years ago
5 0

Answer: The debt payments-to-income ratio is: calculated by dividing monthly debt payments (excluding mortgage payments) by net monthly income.

This ratio is a measure that analyze an person’s monthly debt payment in accordance with his/her monthly income.  

The gross income is the pay before taxes and other variables are deducted.

<em>i.e. </em><em>debt payments-to-income ratio = \frac{Total\: of\: Monthly\: Debt\: Payments}{Gross\:Monthly\:Income}</em>

<em>Therefore, the correct option is (b)</em>

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If the marginal propensity to consume (MPC) is 0.75, and if the goal is to increase real GDP by $400 million, then by how much w
mr Goodwill [35]

Answer:

Government spending would have to change by <u>$1.6 billion</u>

Explanation:

The marginal propensity to consume (MPC) refers to the proportion of an increase in aggregate income that is spent on consumption of commodities by a consumer.

Since from the question, we have:

MPC = Marginal propensity to consume = 0.75

The MPC can therefore be used to calculate the fiscal multiplier which measures the effect of government spending on real GDP as follows:

Fiscal multiplier = 1 / (1 - MPC) = 1 / (1 - 0.75) = 1 / 0.25 = 4.0

Therefore, we have:

Change in government spending = Fiscal multiplier * Amount of targeted increase real GDP = 4.0 * $400 million = $1.6 billion

Therefore, government spending would have to change by <u>$1.6 billion</u> to generate $400 million increase in real GDP.

6 0
3 years ago
Which level of quality of information would eventually exist in the market for lemons assuming there was no way to gain assuranc
Neko [114]

The level of quality of information would eventually exist in the market for lemons assuming there was no way to gain assurance regarding the accuracy of the information would be low only.

In the given scenario we are given that there is no way to reassure ourselves that the information is accurate about the lemons in the existing market.

So we can not be a hundred percent sure that the information regarding the lemons existing in the market is correct.

As a result, if there was no method to verify the authenticity of the information, only low-quality information would eventually be available in the market for lemons.

Learn more about the market:

brainly.com/question/25754149

#SPJ4

3 0
1 year ago
Zara has pioneered "cheap chic" in clothing apparel. Zara offers current and desirable fashion goods at relatively low prices. T
rodikova [14]

Answer:

The correct answer is (a)- Integrated cost leadership/differentiation.

Explanation:

Companies that integrate strategies instead of relying solely on a generic strategy are able to adapt quickly and learn new technologies. Products manufactured under the leadership of integrated costs-differentiation strategy are less distinctive than differentiators and the costs are not as low as the cost-leader, but combine the advantages of both approaches. A somewhat distinctive product that is mid-range in price can be a big attraction for customers than a cheap generic product or an especially expensive one.

8 0
3 years ago
Job 148 requires $12,000 of direct materials, $6,700 of direct labor, 550 direct labor hours, and 270 machine hours. It also req
taurus [48]

Answer:

b. $26,740

Explanation:

The computation of the total amount of overhead allocated is shown below:

overhead allocated is

= (actual direct labor hour × overhead rate per direct labor hour) + (Actual machine hour × overhead rate per machine hour)  

= (550 × 28) + (270 × 42]

= $15,400  + $11,340

= $26,740

hence, the total amount of overhead allocated is $26,740

6 0
2 years ago
How are payroll taxes different from personal income taxes?
marta [7]
D) They pay for specific social programs rather than general government activities.
5 0
2 years ago
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