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mr_godi [17]
3 years ago
6

The martin family has a disposable income of $90,000 annually. assume that their marginal propensity to consume is 0.8 (the mart

in family spends 80% of new disposable income on consumption) and that their autonomous consumption spending is equal to $10,000. what is the amount of the martin family\'s annual consumer spending?
Business
1 answer:
stiks02 [169]3 years ago
7 0
90000$:100%=x$:80%, x*100=90000*80, x=72000$
The Martin family spends 80% of annual income which is 72000$ and their autonomous consumption spending is 10000$.
So Martin's family annual consumer spending is 72000$+10000$=82000$.
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solution

we will apply Future value of annuity that is express as

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7 0
2 years ago
Read 2 more answers
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