Answer:
Autonomous consumption is <u>$1,000</u> and the marginal propensity to consume is <u>0.9</u>.
A consumer whose income increases by $100 will increase consumption by <u>$90</u>.
Explanation:
Given C = 1000 + 0.9Y
Autonomous consumption refers to consumption expenditure of consumers that does not depend on income. Therefore, autonomous consumption is therefore the consumption expenditure made by the consumers when they do not have income or when income is zero (i.e. when Y = 0).
Substituting for Y = 0 into the consumption function, we can obtain autonomous consumption is follows:
Autonomous consumption = 1000 + (0.9 * 0) = 1,000
The marginal propensity to consume refers to the proportion of the increase in disposable income that is spent on the consumption of goods and services by a consumer. From the consumption function, the marginal propensity to consume is 0.9.
Since marginal propensity to consume is 0.9, a consumer whose income increases by $100 will therefore increase consumption by $90 (i.e. $100 * 0.9 = $90).
Answer and Explanation:
The journal entries are shown below:
a. No journal entry is required
b. Depreciation expense $4,756
To Accumulated depreciation-Machinery $4,756
(Being depreciation expense is recorded)
Here the depreciation expense is debited as it increased the expense and credited the accumulated depreciation as it decreased the assets
Working
Accumulated depreciation is
= ($69,600 - $4,640 ÷ 8 × 5)
= $40,600
Now Revised depreciation is
= ($69,600 - $40,600 - $5,220) ÷ 5
= $4,756
B. Employees can brainstorm to find causes and possible solutions
Answer:
Message encoding.
Explanation:
Communication can be defined as the process of conveying information from one person or location to another. Communication can also be described as the transmission of messages through signs, pictorial representation, verbal means.
Encoding can be defined as the process in which an idea is transformed in a communicable message and then transmitted through various channels such as television, radio, internet.
Message encoding involves sending messages to the receiver in comprehensible words.
