Answer:
MPC = 0.8
MPC = 0.2
Explanation:
Marginal propensity to consume is the proportion of an increase in income that is spent on consumption.
Marginal propensity to consume = increase in consumption / increase in disposable income
Marginal propensity to save is the proportion of an increase in income that is saved.
Marginal propensity to save = increase in savings / increase in disposable income
Disposable income is either consumed or saved. so,
Marginal propensity to consume + marginal propensity to save = 1
Marginal propensity to consume = $64 / $80 = 0.8
Marginal propensity to save = $16 / $80 = 0.2
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Answer: The new divisor for the price-weighted index is 0.77982
Explanation:
Divisor = [(94 + 312/2 + 90) / [(94 + 312 + 90) / 3]
= 0.77982
Answer:
Direct material used= $420
Explanation:
Giving the following information:
Sales revenue= $4,000
Purchases of direct materials= $400
Direct labor= $450
Manufacturing overhead= $620
Operating expenses= $650
Beginning raw materials inventory= $200
Ending raw materials inventory= $180
Beginning work in process inventory= $320
Ending work in process inventory= $410
Beginning finished goods inventory= $250
Ending finished goods inventory= $200
Direct material used= ?
Direct material used= beginning inventory raw material + purchase - ending inventory raw material
Direct material used= 200 + 400 - 180= $420
Answer: $1268.20
Explanation:
value of the bond today = Present value of coupon (interest) payments + present value of principal = 120[PVOAIF8%, 10] + 1000[PVIF8%, 10] =1,268