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artcher [175]
3 years ago
11

Household behavior with respect to changes in income can be described by the marginal propensity to consume (MPC) and the margin

al propensity to save (MPS). These variables can be used to predict the eventual changes in equilibrium output after the change in income has occurred. The____________ the larger the resulting change in output for a given change in expenditure.
Business
1 answer:
Citrus2011 [14]3 years ago
5 0

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.

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Which sentence indicates that Roger's company, Fine Jewelry, follows a subscription business model? Roger's company, Fine Jewelr
nlexa [21]

Answer:

Its "Customers get a new piece of jewelry every three months.

Explanation:

The first option, never tells what the customer gets in return.

 Sorry this answer is two weeks late. Happy Thanks Giving!

6 0
2 years ago
Inez hires josh to paint her portrait to her satisfaction for $4,000. when josh finishes the portrait, inez announces that she i
mamaluj [8]

If Inez is not satisfied with the painting by Josh, Inez does not have to accept the portrait or pay Josh any money. Inez does not have to pay Josh at all.

7 0
2 years ago
Your portfolio consists of an index mutual fund which represents the overall market and Treasury bills. The mutual fund has a po
pshichka [43]

Answer:

8.01%

Explanation:

Expected return on mutual fund = Risk-free rate + Market risk premium*Beta

Expected return on mutual fund = 3% + 7.7%*1

Expected return on mutual fund = 10.70%

Best estimate of the portfolio expected rate of return = Weight of  mutual fund*Expected return on mutual fund + Weight of  risk-free Treasury bills*Expected return on risk-free  Treasury bills

Best estimate of the portfolio expected rate of return = 65%*10.70 + 35%*3

Best estimate of the portfolio expected rate of return = 0.08005

Best estimate of the portfolio expected rate of return = 8.01%

7 0
2 years ago
Adams Industries holds 42,000 shares of FedEx common stock, which is not a large enough ownership interest to allow Adams to exe
olga2289 [7]

Answer:

investment in FedEx = 4410000

Unrealized holding gain = 420000

Explanation:

given data

FedEx common stock = 42,000 shares

market value = $95

market value = $105

to find out

what amount will it be reported in the 2019 balance sheet

solution

we know that It is coming under available for sale security since the shares hold is less than majority of outstanding shares

and here

investment in FedEx =42,000  × 105

investment in FedEx = 4410000

and

Unrealized holding gain is = ( 105 - 95 ) × 42000

Unrealized holding gain = 420000

5 0
3 years ago
The ACME company manufactured x brooms per month from January to April, inclusive. On the first of each month, during the follow
Papessa [141]

Solution:

Pick some smart number for x,

let x=2 (I chose x=2 as in this case monthly shipments would be X/2=1).

From January to April, inclusive 4x=8 brooms were produced and

in May the company paid for storage of 8-1 =7 brooms,

in next month for storage of 6 and so on.

So the total storage cost would be:

= 1 ∗ (7+6+5+4+3+2+1+0)

= 28

--> as x=2 , then 28 = 14x

So the answer is 14x

4 0
3 years ago
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