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andrew-mc [135]
3 years ago
6

The consumption function shows the relationship between consumption spending and _______. The slope of the consumption function

is the _________. Changes in consumption can be predicted by multiplying the change in _______ by the If the MPC
Business
1 answer:
Stella [2.4K]3 years ago
6 0

Answer:

Consumption Function : Relationship between Consumption Spending & Income

Consumption Function Slope = Marginal Propensity Curve  (MPC)

Change in Consumption = Change in Income X MPC

Explanation:

Consumption Function is the curve representing relationship between Consumption spending and Income.

C = a + bY ; where :- C = Consumption , Y = Income ,  a = Autonomous Consumption i.e consumption at 0 level of income , b = MPC i.e additional consumption consumed from additional income = ΔC / ΔY

b = MPC i.e change in C due to additional change in Y = ΔC / ΔY is the slope of Consumption Function

MPC = ΔC / ΔY .

So, change in consumption i.e ΔC = MPC X ΔY  

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A way of buying, in which you can purchase goods or services and pay later, is called:
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5 0
3 years ago
The Johnson Family is looking to buy a new house on Belmont Road. Their insurance deductible is increased by $500 if they live m
user100 [1]

Answer:

a) Absolute Value Inequality => Absolute(0 + y) < 2

b) -2 < y < 2

Which means, Johnson Family has to live within the range of -2 to +2 from the fire department. Otherwise, they will have to pay 500 USD as increased deductible.

Explanation:

<u><em>Johnson Family has to live within the range of -2 to +2 from the fire department. </em></u>

<em>a) Absolute Value Equation:</em>

Absolute(0 + y) < 2

where y represent the location of the new house and 0 represents the location of the fire department.

Furthermore,

<em>Absolute(0 + y) < 2 = (0 + x) < 2 when (0 + y) is +ve. </em>

and

<em>Absolute(0+y) <2 =  -(0 + x) < 2 when (0 + y) is -ve. </em>

b) When (0 + y) is +ve,

we have,  (0 + y) < 2.

<em>Solving for y and subtracting 0 from both sides. </em>

0-0 + y < 2 - 0

<em>y < 2</em>

and when (0 + y) is -ve,

<em>we have, - (0 + y) < 2. </em>

Solving for y:

- 0 - y < 2

multiplying negative from both sides

<em>y > - 2</em>

<em>So, we have -2 < y < 2 </em>

<em>Johnson Family has to live within the range of -2 to +2 from the fire department. Otherwise, they will have to pay 500 USD as increased deductible. </em>

7 0
3 years ago
Go to the internet and find a news article published within the last month that discusses changes in demand and supply of partic
Setler79 [48]

Answer: The explanation is provided below

Explanation:

Below article is the summary of the acceleration of inflation in the emerging markets that was published in 2018.

According to the article, inflation in an economy is caused by an adverse supply shock or as a result of the expansionary fiscal policy or the expansionary monetary policy.

In an adverse supply shock, total quantity of basic goods will reduce drastically causing the aggregate demand to rise exponentially and therefore, push prices higher and then gradually lead to inflation.

Also, the continous and eventual implementation of the expansionary fiscal or monetary policy through continous tax cuts or by increasing government spending or reducting interest rates, lead into significant increase in the aggregate demand and as a result, prices rise eventually resulting in hyperinflation in the economy. This will also lead to increase in the real GDP of the economy.

Different tools in the monetary policy framework can be used to control inflation such as government securities,

the cash reserve ratio, interest rates. To reduce recession, government utilize automatic stabilizer in order to boost the economy.

8 0
3 years ago
Creditors often include several requirements in a mortgage contract in order to protect their interests. In order to ensure that
muminat

Answer:

prepayment penalty, maintain, insurance, mortgage

Explanation:

Prepayment penalty clause relates to the situation that the borrower shall not prepay the borrowed amount as to the creditor it will be loss in the form of interest, thus, it do not want that the borrower shall collect from any other source.

The property should not loose its value, or the value shall not be degraded as that will result in loss, as when the borrower fails to repay the loan, creditor has the right to sell it, if it will not be maintained the value will degrade.

Insurance is required so that same as in above mentioned point that the value is not lost, and then the value of loan is fully recoverable.

If the value of loan exceeds 80% of value of property there shall be mortgage as the lender ensures his payment and no failure shall be there.

5 0
3 years ago
Hemmer Company reported net income for 2016 in the amount of $43,000. The company's financial statements also included the follo
LenKa [72]

Answer:

C. $49,600.

Explanation:

We can find the net cash provided by operating activities using the information given to us in the question. We will start from net income which is $43,000 and then add 5,800 to it because it is a current asset which is decreasing which means that the company received cash for it, then we will subtract 1,900 because it is an increase in inventory and we assume the company paid cash for it because there are no increase in accounts payable, and then we will add 2,700 because depreciation is a non cash expense, therefore we will add it back when we calculate the cash provided by operating activities.

43,000+ 5,800-1,900+2,700=49,600

4 0
3 years ago
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