The estimation of the marginal propensity to consume should be 2 ÷3
The computation of the estimation of the marginal propensity to consume is shown below:
But before that the multiplier should be
= Total demand for goods & services ÷ government spending
= $42 billion ÷ $14 billion
= 3
Now as we know that
Multiplier = 1 ÷ (1 - MPC)
3 = 1 ÷ (1 - MPC)
1 - MPC = 1 ÷ 3
MPC = 1 - 1 ÷3
= 2 ÷ 3
Therefore we can conclude that The estimation of the marginal propensity to consume should be 2 ÷3
Learn more about the multiplier here: brainly.com/question/490794
Answer:
$65,750
Explanation:
Given:
Direct materials = $6.20
Direct labor = $3.70
Variable manufacturing overhead = $1.25
Fixed manufacturing overhead = $10,000
Sales commissions = $1.50
Variable administrative expense = $0.50
Fixed selling and administrative expense = $5,000
Number of unit Produced = 5,000 units
Calculation:
Production Cost = Direct Material cost + Direct labor cost + variable manufacturing overhead + Fixed manufacturing overheads.
= (5000 x $6.20) + (5000 x $3.70) + (5000 x $1.25) + $10,000
= ($31,000) + ($18,500) + ($6,250) + $10,000
= $65,750
Answer: $25,000
Explanation:
The Money Multiplier allows us to calculate how much money banks can create in an economic given a certain reserve ratio.
The formula is;
Money Multiplier = 1 /reserve ratio
= 1/ 0.4
= 2.5
The reserve ratio is 40% which means the bank should be holding 40% of deposits as reserves.
= 100,000 * 40%
= $40,000
Yet they are holding $50,000. They are holding $10,000 more than required. Should they release that $10,000 then they will create;
= 10,000 * money Multiplier
= 10,000 * 2.5
= $25,000
Answer: A correlation of 1.00 among demand in two
Explanation:
Answer:
$1,505,000
Explanation:
Net income is the earning by the business calculated by deducting all the expenses from the revenue for the period. It is the earning which is available to distribute in the stockholders of the business. The preferred dividend must be paid if there is a profit in the period. The residual amount after deducting profit is available of common shareholders.
Net Income = $1,750,000
Preferred Dividend = $245,000
Income available for Common stockholders = Net Income - Preferred dividend
Income available for Common stockholders = $1,750,000 - $245,000
Income available for Common stockholders = $1,505,000
