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garri49 [273]
3 years ago
11

Suppose that disposable income, consumption, and saving in some country are $200 billion, $150 billion, and $50 billion, respect

ively. Next, assume that disposable income increases by $20 billion, consumption rises by $15 billion, and saving goes up by $5 billion.a. What is the economy’s MPC?What is its MPS?b. What was the APC before the increase in disposable income?What was the APC after the increase?
Business
1 answer:
nalin [4]3 years ago
6 0

Answer:

The computation is shown below:

Explanation:

The computation is shown below:

As we know that

a) Marginal Propensity to Consume (MPC) = Change in consumption ÷ change in disposable income

MPC = $15 billlion ÷ $20 billion

MPC = 0.75

And,

Marginal Propensity to Save (MPS) = change in saving ÷change in disposable income

MPS = $5 billion ÷ $20 billion

MPS = 0.25

Now

b) Before the increase in disposable income

The average propensity to consume (APC) is

= Consumption ÷ disposable income

= $150 billion ÷$200 billion

= 0.75

And,

After the increase in the disposable income

New disposable income = $200 billion + $20 billion

= $220 billion

And,

New consumption = $150 billion + $15 billion

= $165 billion

So,

APC = New consumption ÷ new disposable income

= $165 billion ÷ $220 billion

= 0.75          

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sleet_krkn [62]

Answer:

a. Revenue recognition principle

Explanation:

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It is not recorded when the cash is actually received.

When the sale is made, the same is to be shown in the books of accounts

Therefore as per the GAAP, the revenue should be addressed by revenue recognition

hence, the correct option is a.

4 0
3 years ago
On July 1, Hartford Construction purchases a bulldozer for $228,000. The equipment has a 9-year life with a residual value of $1
UkoKoshka [18]

Answer:

a. Depreciation expense per hour:

= (Cost - salvage value) / Expected operating hours

= (228,000 - 16,000) / 26,500

= $8 per hour

b. First year depreciation:                                      Second year depreciation:

= 1,250 * 8                                                                  = 2,755 * 8

= $10,000                                                                   = $22,040

Third year depreciation:

= 1,225 * 8

= $9,800

Journal entries

Date                    Account Title                                    Debit                 Credit

June 30, Year 1 Depreciation                                     $10,000

                          Accumulated Depreciation                                       $10,000

Date                       Account Title                                   Debit                 Credit

June 30, Year 2     Depreciation                                 $22,040

                              Accumulated Depreciation                                  $22,040

Date                       Account Title                                   Debit                 Credit

June 30, Year 3     Depreciation                                 $9,800

                              Accumulated Depreciation                                  $9,800

4 0
3 years ago
Is the customer always right?" a. Company policy and rules always should be followed regardless of what the customer may need or
alisha [4.7K]

Answer: C.

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However there should be certain precautionary measures taken if they encounter with a customer that, beside all the kindness you were offering, is rude, frantic, starts damaging the goods, ambience etc.

8 0
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lara [203]

Answer:

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b. readiness-based diversity training

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Diversity Training:

A type of training in which the audience are trained to accept and understand the diversity of traits and cultural backgrounds of people.

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an evaluation of the project

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