1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vlad1618 [11]
3 years ago
6

If the marginal propensity to consume is equal to 0.85, then a $500 increase in disposable income leads to a:

Business
1 answer:
AlekseyPX3 years ago
8 0

The question is incomplete. The complete question is stated below.

If the marginal propensity to consume is equal to 0.85, then a $500 increase in disposable income leads to a:

a. $400 increase in consumption spending

b. $75 increase in consumption spending

c. $425 increase in personal saving

d. $75 increase in personal saving

Answer:

If a $500 increase causes an increase of $425 in consumer spending, the rest of $75 is the increase in personal saving. Thus, option D is the correct answer.

Explanation:

The marginal propensity to consume or MPC is the percentage of the additional income that will be used for consumption spending. It is a concept that is used to calculate how much of an increase in income will be used in consumption and saving. The formula to calculate MPC is,

MPC = Change in consumer spending / Change in income

0.85 = Change in consumer spending / 500

500 * 0.85 = Change in consumer spending

Change in consumer spending = $425

If a $500 increase causes an increase of $425 in consumer spending, the rest of $75 is the increase in personal saving.

You might be interested in
Arts stream padhne se aacha to python ya java ki book pdf download kar lo usse padh lo
Advocard [28]

Answer:

Hahahahahahahha is it that much difficult

6 0
2 years ago
Paraphrasing is concerned with feeding back the key points of what a client has said. Reflection of feeling, in contrast, involv
ANEK [815]

Answer:

A. Helping clients become more affective

Explanation:

Reflection of feelings involves getting to know the emotions of the clients and reflecting those feelings back to the clients. This helps the client feels like he or she is being understood, listened to and validated. Reflection of feelings establishes a good rapport between the clients and the professional. Reflection of feeling statements accurately mirror client's feeling by identifying the client's emotions based on verbal and non verbal messages.

3 0
3 years ago
Accruals recorded in the Salaries and Wages Expense and Salaries and Wages Payable columns of the balance sheet and income state
zhenek [66]

Answer:

Incurred but unpaid

Explanation:

When wages and salaries are incurred by an entity and paid, the entries required are debit Wages and Salaries expense, credit cash account. However, when the expense is incurred but cash is yet to be paid, this represents a liability to the organization and as such, an accrual is required. The entries to be posted are debit Wages and salaries expense (in the income statement), credit Accrued wages and salaries (in the balance sheet).

4 0
3 years ago
Who wants brainliest? <br><br> Name 3 ways it is okay to use copyrighted material and explain:
mart [117]

Answer:

1:  Criticism

2: Parody

3: News Reporting

4: Research, Scholarship

5: Teaching

Explanation:

Fair use allows limited use of copyrighted material without permission from the copyright holder for purposes such as criticism, parody, news reporting, research and scholarship, and teaching. There are four factors to consider when determining whether your use is a fair one.

5 0
3 years ago
Your auto insurance policy has a 200 monthly premium and 700 deductible. What is the maximum amount you will have to pay out of
ValentinkaMS [17]
140000 is the answer
5 0
3 years ago
Read 2 more answers
Other questions:
  • Maxwell and Smart are forming a partnership. Maxwell is investing a building that has a market value of $180,000. However, the b
    12·1 answer
  • How is using a coffee cup calorimeter an effective way to determine enthalpy?
    11·1 answer
  • The purchasing power of people with _____ decreases a lot when inflation occurs.
    15·2 answers
  • Both Phoebe and Connor are trying to maximize their lifetime income. Each has a different plan on how to do it best.
    7·2 answers
  • Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the Work in Process Inventory accou
    8·1 answer
  • After considering current market conditions, an investor decides to place 60% of her funds in equities and the rest in bonds. Th
    13·1 answer
  • Select three of the following that are listed as sensitive sites in the location and transportation (LT) category that should be
    7·1 answer
  • What are the objectives of the public sector?
    9·1 answer
  • Describe the type of bond investment program you think the Shuman family should follow. In answering this question, give appropr
    15·1 answer
  • On January 1, 2020, Commonwealth Inc. leases equipment to Tap Inc. The equipment has a fair value of $156,000, a carrying value
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!