Answer:
Autonomous consumption is <u>$1,000</u> and the marginal propensity to consume is <u>0.9</u>.
A consumer whose income increases by $100 will increase consumption by <u>$90</u>.
Explanation:
Given C = 1000 + 0.9Y
Autonomous consumption refers to consumption expenditure of consumers that does not depend on income. Therefore, autonomous consumption is therefore the consumption expenditure made by the consumers when they do not have income or when income is zero (i.e. when Y = 0).
Substituting for Y = 0 into the consumption function, we can obtain autonomous consumption is follows:
Autonomous consumption = 1000 + (0.9 * 0) = 1,000
The marginal propensity to consume refers to the proportion of the increase in disposable income that is spent on the consumption of goods and services by a consumer. From the consumption function, the marginal propensity to consume is 0.9.
Since marginal propensity to consume is 0.9, a consumer whose income increases by $100 will therefore increase consumption by $90 (i.e. $100 * 0.9 = $90).
Answer:
$778.05625
Explanation:
The computation of the amount of repayment is shown in the attachment below:
Given that
Proceeds for year 4 through 9 at $2Z, $3Z
The Principal of the loan amount = $10,000
Interest rate = 7% per year
Based on the given information, the value of Z or the amount of repayment is
= Principal of the loan amount ÷ Total annuity
= $10,000 ÷ 12.85254119
= $778.05625
The correct options about the international obtaining of funds are:
- Money markets
- Capital markets
<h3 /><h3>
Money Market</h3>
The money market is a good form to obtain money to capitalize a company, it functions when an enterprise negotiate debt instruments to short term, giving to the buyer low risk and high profitability, in this form, the company obtain for a shor term a large mount of money and can invest in technology, resources or others to improve and grow.
If you want to learn more about Financial Market, you can visit the following link: brainly.com/question/15960668?referrer=searchResults
Answer:
1. B
2. E
Explanation:
1. Consumer or buyers use the extended decision making as it is that decision making which involves high level of the purchase involvement, extensive internal and the extensive information search with complex evaluation of the alternatives. In case of automobiles, buyers will choose the extended decision making as it is expensive, infrequently purchased products.
2. As there is involvement of high risk of financial loss in the future purchasing power, for people or consumer, the automobiles have the situational involvement, it is the short term state which directs towards the attaching relevance of a situation or person. In other words, it is an state where, it establish a level of involvement when a consumer or person think of a specific situation or object.
Answer:
b. 2.81 times
Explanation:
Calculation to determine Total stockholders' equity, end-of-year 121,851
Total asset turnover is:
First step is to calculate the Total assets
Beginning Ending
Total liabilities $83,932 $103,201
Total equity 198,935 121,851
Total assets $282,867 $225,052
Now let determine the Total asset turnover
Total asset turnover = $712,855/[($282,867 + $225,052)/2]
Total asset turnover= 2.81 Times
Therefore Total stockholders' equity, end-of-year 121,851
Total asset turnover is:2.81 Times
