Answer:
0.75
Explanation:
Marginal Propensity to Consume (MPC) is the change in consumption due to change in income
Change in consumption = $7,250 - $6,500 = $750
Change in income = $11,000 - $10,000 = $1,000
MPC = Change in consumption / Change in income
MPC = 750 / 100
MPC = 0.75
Answer:
Explanation:
The journal entry is shown below:
1st July Debit Prepaid insurance $13620
Credit Cash $13620
31st December Debit Insurance expenses $2270
Credit Prepaid insurance $2270
Insurance expense was calculated as:
= $13620/3 years × 6months/12months
= $4540 × 1/2
= $2270
The answer to the question is c
Answer:
1-The federal government increases spending on rebuilding the New Jersey shore following a hurricane. This is an example of an automatic stabilizer.
2- The Federal Reserve sells Treasury securities. This is an example of a discretionary fiscal policy.
3- The total the federal government pays out for unemployment insurance decreases during an expansion. This is an example of not a fiscal policy.
4- The federal government changes the required gasoline mileage for new cars. This is an example of an automatic stabilizer.
5- Congress and the president enact a temporary cut in payroll taxes. This is an example of a discretionary fiscal policy.
