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
Fofino [41]
3 years ago
13

Suppose disposable income increases by $ 2,000. As a result, consumption increases by $ 1,500. 1. The increase in savings result

ing directly from this change in income is $ ________.2. The marginal propensity to save (MPS) is _________.3. The marginal propensity to consume (MPC) is _________.
Business
1 answer:
NeTakaya3 years ago
8 0

Answer:

1. The increase in savings resulting directly from this change in income is $500

That is

Increase in savings = Increase in income minus increase in consumption

= 2000 - 1500

= $ 500

2.The marginal propensity to save (MPS) is calculated by dividing the change in savings by the change in income.

That is

ΔS/ ΔY,

Therefore given

Change in savings =ΔS =$500

Change in income =ΔY = $2000

MPS = 500/2000

MPS = 0.25

3.The marginal propensity to consume (MPC) is calculated by dividing change in consumption by changes in come.

That is ΔC / ΔY

Where ΔC = 1500

ΔY = 2000

Therefore MPC = 1500/2000

= 0.75

1. The increase in savings resulting directly from this change in income is $

You might be interested in
Last month, you lent a work colleague $5000 to cover some overdue bills. He agreed to pay you in 1 month with interest at 2% for
faust18 [17]

Answer:

There are at least 2 opportunity costs associated with of letting your colleague have another month:

  1. if you invested in the oil-well venture, you could have earned $5,100 x 36% = $1,836 in one year
  2. if you invested in the new IT stock, you could have earned $5,100 x 48% = $2,448 in one year

You could invest in one of these options, or divide your money and invest in both options, e.g. invest $2,000 in the oil company and $3,000 in the IT company. Each different investment proportion results in a different opportunity cost.

Explanation:

Opportunity costs are the benefits lost or extra costs associated to carrying out an investment or activity instead of another alternative. Sometimes you might have several opportunity costs for one investment, e.g. invest in the IT company which is risky, invest in corporate bonds which is less risky or invest in US securities which is a safe investment.

6 0
3 years ago
(1) Real-Balances Effect
ozzi

Answer:

(A) 5 and 10.

Explanation:

Factor which can shift the Investment spending:

(5) Profit Expectations

              If the firm forecast a good economy will probably invest more than if it forecast a bad economy. businessman will increase and decrease their investment based on expepectations.

(10) Degree of Excess Capacity

              Assuming a rational behavior, company's will investment if needed. So if there is a portion of unsued capital they will use it before investing to acquire more. Once the current capital is used or near max capacity they will invest. Below a certain threshold they won't.

4 0
3 years ago
Carbondale Casting produces cast bronze valves on a 10-person assembly line. On a recent day, 160 valves were produced during an
RideAnS [48]

Answer:

(a) 2

(b) 2.25

(c) 12.5%

Explanation:

To solve this question we need to remember that

Total \, Productivity = \frac{Total\,Ouput}{Total \, Man \, Hours}

(a) 10 persons produce 160 valves in 8 hours, this implies a productivity of 2=160/(8x10)

(b) 2.25= 180/(8x10)

(c) Percentage change is given by (2.25-2)/2=.125

5 0
3 years ago
Many economists attribute part of the recent increase in European unemployment to A high birthrates. B slow rates of technologic
marta [7]

Answer:

The correct answer is C) generous benefits for unemployed workers.

Explanation:

Many people in a position to work see state aid as the way to dedicate themselves to household chores, instead of working in a company. This situation has a negative impact on the unemployment indicator, making one directly believe that there is a problem in this regard, when in fact it is located elsewhere. Governments should execute actions in order to achieve a better insertion of people in the labor field, and that they also see that there is a very big difference compared to the facilities offered by the state for their maintenance.

3 0
3 years ago
What is 44756 ÷167 long divison
Sliva [168]

44756 divided by 167 equals 268 with a remainder of 0

6 0
3 years ago
Other questions:
  • Measures to ensure environmental sustainability
    10·1 answer
  • Meadows Manufacturing follows the accrual system. An accrual results when ____________ and a deferral results when __________.
    11·1 answer
  • Hutter corporation declared a $0.50 per share cash dividend on its common shares. the company has 37,000 shares authorized, 19,2
    14·1 answer
  • Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was $2,000,000. According to indepen
    5·1 answer
  • In her career exploration class alternate side that she likes being an airline pilot now she's in the process of research and co
    7·2 answers
  • Trisha's Tasty Treats, a bakery and coffee shop, is having a grand opening on Saturday to celebrate its newest location. In addi
    14·1 answer
  • 1. Lily operates a gift shop and has a lot of inventory to manage. She counts inventory once every 4 weeks. Preparing and placin
    15·2 answers
  • Deal Leasing leased equipment to Hand Company on January 1, 2021. The leased equipment's book value is $420,000 with no estimate
    14·1 answer
  • Please Help!
    13·1 answer
  • Item 17 A certain cell phone plan charges a fee of $1 for each international call made plus $0.02 for each second of talk time f
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!