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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.

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Explanation:

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The decision making process followed by consumers to maximize utility assumes that
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3 years ago
Wesimann Co. issued 15-year bonds a year ago at a coupon rate of 7.5 percent. The bonds make semiannual payments and have a par
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Answer:

$1,161.46

Explanation:

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7 0
3 years ago
If the required reserve ratio is 10%, actual reserves are $10 million, and currency in circulation is equal to $20 million, M1 w
Pie

Answer:

The correct answer is E

Explanation:

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The formula for computing the M1 is as:

M1 = coins as well as currency in circulation + checkable or demand deposit + traveler checks

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3 years ago
Why isn't marketing given a place of importance in the organizational hierarchy?
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Explanation:

4 0
2 years ago
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