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
pishuonlain [190]
2 years ago
14

Suppose that disposable income, consumption, and saving in some country are $800 billion, $700 billion, and $100 billion, respec

tively. Next, assume that disposable income increases by $80 billion, consumption rises by $64 billion, and saving goes up by $16 billion. What is the economys MPC? Its MPS?
Business
2 answers:
Jobisdone [24]2 years ago
7 0

Answer:

MPC = 0.8

MPC = 0.2

Explanation:

Marginal propensity to consume is the proportion of an increase in income that is spent on consumption.

Marginal propensity to consume = increase in consumption / increase in disposable income

Marginal propensity to save is the proportion of an increase in income that is saved.

Marginal propensity to save = increase in savings / increase in disposable income

Disposable income is either consumed or saved. so,

Marginal propensity to consume + marginal propensity to save = 1

Marginal propensity to consume = $64 / $80 = 0.8

Marginal propensity to save = $16 / $80 = 0.2

I hope my answer helps you

Masja [62]2 years ago
6 0

Answer: MPC = 0.8 ; MPS = 0.2

Explanation:

Given the following ;

Increase in disposable income = $80 billion

Increase in consumption = $64 billion

Increase in savings = $16 billion

The disposable income of a country can be regarded as the that part of a country's or an individual's income which isn't subject to any sort of deduction such tax which one can decide to save, spend on consumption or investment.

Marginal Propensity to Consume(MPC) = ratio of the tendency of an economy or individual to spend on consumption with change in value or amount of disposable income

MPC = Increase in consumption /increase in disposable income

MPC = $64 billion / $80 billion = 0.8

2. Marginal Propensity to Save(MPS) = ratio of the tendency of an economy or individual to save its income with change in value or amount of disposable income

MPS = Increase in saving /increase in disposable income

MPS = $16 billion / $80 billion = 0.2

Summing up both MPS and MPC will always give a value of 1, As disposable income are always placed in either of the two categories : Consumption or Saving.

You might be interested in
A count of supplies indicated that $104 of supplies had been used.
tankabanditka [31]
It can be assumed that $104 worth of Supplies have been used?
7 0
3 years ago
A comparable sold ten months ago for $350,000. Appraiser Andy concludes that property values have increased by 5% per year. What
astraxan [27]

The adjustment in the property value should be <u>$17,500 increase</u> so that the property is valued at $367,500.

<h3>Data and Calculations:</h3>

Value of property 10 months ago = $350,000

Increase in property values = 5%

Adjustment in property = $17,500  ($350,000 x 5%)

<h3>What is adjustment in property value?</h3>

This is the change in the value of property as a result of an increase or decrease in the values of comparable properties within the locality.

Thus, the adjustment in the property value should be <u>$17,500 increase</u> so that the property is valued at $367,500.

Learn more about adjustment in property values here: brainly.com/question/15397430 and brainly.com/question/7142333

7 0
2 years ago
When a potential investment has a negative net present value,?
Pachacha [2.7K]
Net present value aka NPV is the gap between the present value of inflows and outflows of cash. This is used in project appraisal, to know whether a particular project with projected receipts and expenditures would be profitable considering current days. This is just a guide because actual occurrences may dramatically deviate from predictions.
5 0
3 years ago
AI Rubber is one of four suppliers of molded rubber products and has a 45% market share. The market for its products is shrinkin
klasskru [66]

Answer:

(B) a cash cow

Explanation:

Based on the information provided within the question it can be said that in this scenario AI Rubber would be considered a cash cow. This term refers to a business and/or product that generates a steady revenue or profit for the owning company or individual. Since AI Rubber has a 45% market share we can say that they are the cash cow of the corporation.

8 0
3 years ago
HELP
andrew11 [14]

Answer:computer

Explanation:

4 0
3 years ago
Other questions:
  • Average distance 8 mile and per gallon cost is 83 cent how much is the journey cost
    15·1 answer
  • The attitude adopted by Calvin Coolidge that government should play a small role in business affairs is known as what?
    8·1 answer
  • A small company that shovels sidewalks and driveways has 100 homes signed up for its services this winter. It can use various co
    10·2 answers
  • Trumbull Company budgeted sales on account of $120,000 for July, $211,000 for August, and $198,000 for September. Collection exp
    8·1 answer
  • The difference between the small business owner and the entrepreneur is that the entrepreneur:_________
    6·1 answer
  • Economists normally assume that the goal of a firm is to
    15·1 answer
  • The five generic types of competitive strategies include
    11·1 answer
  • Money aggregates
    15·1 answer
  • Condensed financial data are presented below for the Phoenix Corporation:
    12·1 answer
  • In economics, the demand for a good refers to the amount of the good that people:_______
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!