Answer: Marginal propensity to consume = $0.60
Spending multiplier = $2.5
Explanation: The MPC can be calculated using following equation :-
= 0.60
Similarly, we can calculate spending multiplier as :-
= $2.5
Taxpayer L has income of $55,000 from Norway, which imposes a 40 percent income tax, and income of $45,000 from France, which im
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Answer:
There are two ways in which Return on Assets can be calculated depending on whether we consider Total assets at year-end or average total assets.
1
or
2
Substituting the values in equation 1 we get,
Substituting values in equation 2 we get,