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3 years ago

If income increases by $100 and consumption increases by $75, the slope of the consumption function equals _____.

Business

1 answer:

Rainbow [258]3 years ago

8 0

Answer:

3/4

Explanation:

The marginal propensity to consume mpc, is the slope of the consumption function and it is what this question requires us to find

We have income increase to be = 100 dollars

Then consumption increase = 75 dollars

MPC = increase in consumption ,75/increase in income 100

= 75/100

= 3/4

Therefore the marginal propensity to consume also called the slope is 3/4

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Say the reserve requirement is 20 percent. If you pay back a loan of $10,000 a bank had previously made to you, the act of payin

otez555 [7]

Answer:

a. adds $10,000 in bank reserves.

Explanation:

Given that

Reserve requirement is 20%

Now if you want to pay back the loan of $10,000 so here the act of paying back the loan is that the amount of loan i.e. $10,00 would get added to the bank reserves

Therefore as per the given situation, the option a is correct

And, the same is to be considered

Thus, all the other options are incorrect

4 0

3 years ago

Probett's Auto Body Repair Shop had revenues that averaged $90,000 per week in April and $80,000 per week in May. During both mo

Dmitriy789 [7]

Answer:

For April, revenue was $90,000 and labor hours were 4x[(40x6)+(25x4)]. This is 90,000/1,360 = 66.18 dollars per hour of labor. For May, revenue was $80,000 and labor hours were 4x[(40x6)+(10x2)] This is 80,000/1,040 = 77 dollars per hour of labor a difference of $ 10.82per hour. The percentage change in productivity between April and May, then, is 3.95/44.12 = 0.1634935026x 100 = 16.35%

good luck ❤

6 0

3 years ago

A stock has had returns of 12 percent, 19 percent, 21 percent, −12 percent, 26 percent, and −5 percent over the last six years.

11111nata11111 [884]

Answer:

Average rate of return= 10.17 %

Geometric return = 9.23%

Explanation:

<em>Geometric average return</em>

This is compounded annual rate of return which is used to measure the performance of an asset over a certain number of years. It helps to measure the return generated by an investment taking into account the volatility .

Unlike the arithmetic average the geometric average gives an idea of the real rate taking into account of volatility

The formula below

Geometric Return =(1+r1) (1+r2) ...... (1+rn)^1/n

Geometric Average return =

(1.12× 1.19× 1.21× 0.88× 1.26× 0.95)^(1/6) - 1 =0.09233168

Geometric return =0.0923 × 100= 9.23%

Geometric return = 9.23%

Average rate of return

<em>The average return is the sum of the returns over the years dividend by the Numbers of returns</em>

Average return = sum of return / No of returns

(12% + 19% + 21% + (12%) + 26% + (5%))/6 =10.17 %

Average rate of return= 10.17 %

Geometric return = 9.23%

4 0

3 years ago

6. Please list and describe your current involvement in the community. Do you volunteer for any local agencies, participate in a

Gwar [14]

there are 5 ways to participate in your community

1 volunteer your time

2 donate your resources

3 shop locally

4 join a class or group

5 support your local sports teams

6 organise your own event

Hope it is helpful

7 0

2 years ago

Manziel Corporation constructed a building at a cost of $10,000,000. Average accumulated expenditures were $4,000,000, actual in

stira [4]

Answer:

$237,500

Explanation:

Cost of building $10,000,000

Avoidable Interest $300,000

Less;Salvage value ($800,000)

Depreciation Cost $9,500,000

Depreciation per year $9,500,000/40=$237,500

7 0

4 years ago