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3 years ago

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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3 years ago

Which factor caused a higher oil prices to directly lead to inflation?

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3 years ago

Wheeler Company issued 5,000 shares of its $5 par value common stock having a fair value of $25 per share and 7,500 shares of it

Arte-miy333 [17]

Answer:

Option (c) $141,818

Explanation:

Data provided in the question:

Number of common stocks issued = 5,000

Value of common stock = $25 par value

Number of preferred stocks issued = 7,500

Value of preferred stock = $20 par value

Lump sum value of total shares issued = $260,000

Now,

Fair value of the preferred stocks = 7,500 × $20

= $150,000

Fair value of the common stocks = 5,000 × $25

= $125,000

Thus,

Total value of the stocks issued = $150,000 + $125,000

= $275,000

Therefore,

Proceeds allocated to the preferred stock

= Lump sum value × [ Fair value of the preferred stocks ÷ value of the stocks ]

= $260,000 × [ $150,000 ÷ $275,000 ]

= $141,818.18 ≈ $141,818

Hence,

Option (c) $141,818

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3 years ago

If the marginal product of capital net depreciation equals 8 percent, the rate of growth of population equals 2 percent, and the

Sphinxa [80]

Question:

If the marginal product of capital net depreciation equals 8 percent, the rate of growth of population equals 2 percent, and the rate of labor-augmenting technical progress equals 2 percent, to reach the Golden Rule level of the capital stock, the ____ rate in this economy must be _____.

A) saving; increased

B) population growth; decreased

C) depreciation; decreased

D) total output growth; decreased

Answer

The correct answer is A) Saving rate of the economy must be increased in order for the economy to reach the Golden Rule Level of the Capital Stock.

Explanation

Golden Rule Level of the Capital Stock is the level at which

MPK = δ,

Where MPK is Marginal Product; and δ the depreciation rate;

so that the marginal product of capital equals the depreciation rate.

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