Answer: Greater the MPC
Explanation:
The Marginal Propensity to consume refers to how much Economic consumption increases or decreases due to a change in income.
The formula for MPC is;
= Change in Consumption/Change in Income.
Consumption is a major component of GDP so it has a direct influence on Economic output. In other words, the larger the level of consumption, the higher the higher the output.
As evident from the equation, if the change in consumption is higher than the change in income, the MPC will be larger. A larger MPC therefore corresponds to a higher Consumption.
If a higher Consumption leads to a larger output and a larger MPC corresponds to a higher Consumption then that means that a higher MPC leads to a larger output.
Answer:
$75.3 million
Explanation:
Data provided in the question:
Shares outstanding = 3 million
Current price = $15 per share
Value of Bonds = $30 million
Selling price of bonds = 101% of par
Now,
Market Value of the firm = Market Value of shares + Market Value of bonds
or
Market Value of the firm = ( 3 million × $15 ) + ( $30 million × 101% )
or
Market Value of the firm = $ 45 million + $30.3 million
or
Market Value of the firm = $75.3 million
$175 is Amy's tax basis in the stock received in the exchange
Solution:
The principle of taxes of the owner is equal in the exchanged land,
when the company assumes responsibility.
If Amy is to sell the stock at $630,
the loss is (630-455) $175,
equivalent to $175, which is the amount of a late loss.
What kind of question is this?
