1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
amm1812
3 years ago
9

The marginal propensity to consume is:

Business
1 answer:
larisa [96]3 years ago
3 0

Answer:

The correct answer is option c.

Explanation:

The marginal propensity to consume or MPC measures the change in consumption or consumer spending due to a change in the disposable income of the consumer.  

The disposable income is the income left with consumers after paying taxes and transfers.  

It is calculated as the ratio of change in consumption to change in income. It is written as  

MPC = \frac{\Delta C}{\Delta Y}

The MPC is higher at lower incomes.

You might be interested in
Expected cash dividends are $4.00, the dividend yield is 8%, flotation costs are 6% of price, and the growth rate is 5%. Compute
Brut [27]

Explanation:

\text { Dividend, } \mathrm{D}= 4 \\\text { Dividend yield rate }=\mathrm{D} / \text { Current price }=8 % \\\text { Current price }, \mathrm{P} 0=\mathrm{D} / 8 \%=\$ 4 / 8 \%=$ 50

\text { Flotation cost, } \mathrm{F}=8 \% \text { of current price }=\$ 50 * 8 \%=\$ 4 \\
\text { Growth rate,g }=4 % \\
\text { Cost of new common stock, } \mathrm{Ke}=[\mathrm{D} 1 /(\mathrm{P} 0-\mathrm{F})]+\mathrm{g} \\  =[\$ 4 /(\$ 50-\$ 4)]+4 \% \\
=0.086956522+0.04 \\
=0.126956522=12.7 \% \text {(Rounded) }

12.7%

6 0
2 years ago
According to the Techstar’s video describing entrepreneurial journeys, and their efforts to support entrepreneurship, what is th
chubhunter [2.5K]

Answer:

Champion

Explanation:

According to Techstars, the final stage of an entrepreneur's journey is champion. This represents start-ups that have a chieved great success like Google, and they are championing the enterpreneur's journey by working with enterpreneurs at earlier stages.

The initial stages of enterpreneur's journey is: inspire, discovery, founder, startup, scale, and finally champion.

5 0
3 years ago
Everything else held constant, an increase in the excess reserves ratio causes the m1 money multiplier to ________ and the money
Cloud [144]

The M1 money multiplier decreases and the money supply decreases when the required reserve ratio on checkable deposits rises, all else being equal.

<h3>What is the reserve ratio?</h3>

The percentage of deposits that commercial banks must retain in cash under the guidance of the central bank is known as the cash reserve ratio.

<h3>How is reserve ratio determined?</h3>
  • The country's central bank, in the instance of the United States, the Federal Reserve, determines the reserve ratio requirement.
  • The calculation for a bank can be obtained by dividing the bank deposits by the cash reserve held with the central bank, and it is expressed as a percentage.
<h3>What is an example of the reserve ratio?</h3>

The required reserve ratio is directly correlated to how much a bank expands the money supply. For instance, if a bank has deposits totaling $1,000,000 and a reserve ratio of 10%, it can lend out $900,000.

learn more about reserve ratio here

<u>brainly.com/question/13758092</u>

#SPJ4

4 0
1 year ago
Colin told the management team that their Ohio-based company should produce the textiles for the new line of jackets in China be
ELEN [110]

Answer:

Free trade.

Explanation:

This theoretical policy can be explained to be certain laws under which the government is seen to impose absolutely no tariffs, taxes, or duties on imports, or quotas on exports. Therefore, it is directly seen to be the opposite of protectionism, a defensive trade policy intended to eliminate the possibility of foreign competition. It is seen in terms of unrestricted measures in importation and also exportation of goods in and out of a country.

In the world of our own, which is of the recent times, this policy implementation is done by means of a formal and mutual agreement of the nations which are seen to be involved. Also this policy in some cases may simply be the absence of any trade restrictions.

7 0
3 years ago
What did the rise of the car culture lead to? the increasing dependence on mass transportation the revitalization of older city
arlik [135]
The rise of the car culture led to the spread of fast-food restaurants and drive-in movie theaters based on the choices from the question above. The "the spread of fast-food restaurants and drive-in movie theaters" is the most suitable answer<span>. Because only this sentence has the relation with the car culture.</span>
6 0
3 years ago
Other questions:
  • For lunch, Maria eats only salads or vegetarian burgers. Her weekly food budget is $36. Each salad costs $6 and each vegetarian
    14·1 answer
  • Monopoly power runs counter to the public interest because it leads to high prices, resource misallocation, and inefficiency. An
    6·1 answer
  • Although many factors affect the value of real property, what is the primary driver in determining the value of real property?
    15·1 answer
  • You work for an automotive parts distributor based in Ohio that is expanding operations in China. Management and operations empl
    11·1 answer
  • ________ theory focuses on people evaluating their treatment by the organization relative to the treatment of others.?
    6·1 answer
  • Consider the market for coffee beans. Suppose that the prices of all other caffeinated beverages go up 30 percent while at the s
    12·1 answer
  • Handmade Soaps Company had operating expenses of $52,000. At the beginning of the year, Handmade Soaps owed $15,000 on accrued l
    11·1 answer
  • Assume that marginal propensity to consume is 0.8 and potential output is $800 billion. if the actual real gdp is $700 billion,
    13·1 answer
  • Differential pricing means different buyers pay different prices for the same quality and quantity of a product.
    8·1 answer
  • Which one of the following statements is correct concerning the payback rule?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!