Answer:
A. less than 5 times as much as your grandfather in terms of real income.
Explanation:
Nominal income is earning that does not take account of changes in price levels. Nominal income is the stated income. Real income considers the changes in inflation. Therefore, real income is nominal income after considering inflation effects.
If grandfather earned $7000 per year in 1961, and myself $35,000 in 2018, mathematically i earned five times more than him. The five times ($35,000/$7,000) is the stated amount without factoring in inflation. The difference between $35,000 and $7000 is the nominal difference because it is not adjusted for inflation. In we consider inflation, the real income is less than five times.
Answer:
3/4
Explanation:
The marginal propensity to consume mpc, is the slope of the consumption function and it is what this question requires us to find
We have income increase to be = 100 dollars
Then consumption increase = 75 dollars
MPC = increase in consumption ,75/increase in income 100
= 75/100
= 3/4
Therefore the marginal propensity to consume also called the slope is 3/4
one could be food im not really
C relative price » sub effect & income effect
Answer:
The total value will not change.
Explanation:
Stock split occurs when a stock is divided into parts. The value of each stock will decline but there will be more stocks and overall value will remains same. If stock A goes through a stock split then the new price per stock will decline but the overall value to the investor will remain same.