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tatiyna
3 years ago
8

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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<h3>What is underwriting?</h3>

Some major financial institutions, including banks, insurance companies, and investment firms, offer underwriting services in which they guarantee payment in the event of damage or financial loss and accept the financial risk for liability resulting from such guarantee.

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"Your question is incomplete, probably the complete question/missing part is:"

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1 year ago
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Answer:

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Explanation:

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Answer:

c. debit to Bad Debts Expense for $6,900.

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