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sammy [17]
3 years ago
15

A worker gets a raise of $120 per month and quickly decides to spend $90 of the money on necessities and the occasional luxury,

while putting the remaining $30 into retirement savings. Based on this decision, calculate the worker's marginal propensity to consume, or MPC, as a decimal. Click or tap the numbers or use your keyboard to type. If you're not sure, just take a guess.
Business
1 answer:
musickatia [10]3 years ago
6 0

Answer:

MPC = 0.75

Explanation:

Marginal Propensity to Consume (MPC) is a part of Keynesian macroeconomic theory and is calculated by the change in consumption divided by the change in income. It quantifies the increased consumption which occurs with an increase in disposable income

MPC = \frac{/Δconsumption}{/Δincome}

MPC = \frac{90}{120}

MPC = 0.75

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6 0
2 years ago
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The Lincoln Company sold a $1,000 par value, noncallable bond several years ago that now has 20 years to maturity and a 7.00% an
Alecsey [184]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

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3 years ago
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IgorLugansk [536]

Answer:

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Conventional wisdom says one should measure a manager's investment performance over an entire market cycle. What arguments suppo
White raven [17]

Answer:

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The forecasting ability of managers, on the balance of probability, will vary for different cases, with a helicopter view of providing a more accurate measure of their performance.

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Cheers!

4 0
3 years ago
An investor has $50,000 in cash to put a $5,000 down payment on 10 different homes valued at $50,000 each and will finance the r
scZoUnD [109]

Answer:

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Leverage -

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