Answer:
First we need to find the increase in her disposable income by subtracting the old disposable income from the new disposable income.
Old Disposable income= 40,000
New disposable income = 50,000
Change in disposable income = 50,000-40,000= 10,000
Although her mpc is 0.8 we need to find out what proportion of her disposable income does she spend on consumption.
So her disposable income was 40,000 and consumption was 36,000
36,000/40,000= 0.9
This means that Jane spends 90% of her dispoasble income on consumption, so if her disposable income increase by 10,000 her increase in consumption was
0.9*10,000= 9,000
Increase in consumption = $9,000
Explanation:
Answer:
The answer is opportunity cost
Explanation:
Opportunity cost is the cost of an alternative forgone action. The cost of an action not taken. For example, Mr A had the chance to choose between job X and job Y, if he chooses job X, the salary that job Y will pay if he had chosen them will be the opportunity cost.
Therefore, the amount of income that would result from an alternative use of cash is the OPPORTUNITY COST.
Answer:
It is called a "House Location" Survey, which is also sometimes called a "drive-by" survey, and its goal is to show the location of the house and other large structures on the property, as well as the orientation of those structures in relation to each other.
Answer: Salvation army
Explanation: Non profit organisations are those organisation, which perform their operation with the objective of social welfare or charity.
Salvation army is a charitable organisation having more than 1.7 million members all over the world, whom they refer to as soldiers. This organisation mainly serves to the poor and hungry.
Thus, we can conclude that the right option is D.
The premium would be 5%
If a portfolio had a return of 11 the risk-free asset return was 6, and the standard deviation of the portfolios excess returns was 25 the premium would be 5%
Portfolio return = 11%
Risk free rate = 6%
Risk premium = Portfolio return - Risk free rate
= 11% - 6% =5%
So, the premium would be 5%
Premium is an amount paid periodically to the insurer by means of the insured for overlaying his chance.
Learn more about premium here- https://economictimes.indiatimes.com/definition/premium
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