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SVEN [57.7K]
3 years ago
10

If aggregate expenditures increase by $14 billion and equilibrium GDP consequently increases by $70 billion, then the marginal p

ropensity to consume in the economy must be
Business
1 answer:
Alchen [17]3 years ago
7 0

Answer:

0.2

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

Marginal propensity to consume is the proportion of disposable income that is spent on consumption

Marginal propensity to consume = amount consumed / disposable income

Marginal propensity to save is the proportion of disposable income that is saved

Marginal propensity to save = amount saved / disposable income

MPC + MPS = 1

MPC = $14 billion /  $70 billion = 0.2

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3 years ago
Which of the following individuals has enrolled in a plan on a fixed income
ahrayia [7]

Fixed income gives a steady of income to the individual.

<h3>What is a fixed income?</h3>

The complete question wasn't found online. An overview was given as the complete information wasn't found.

It should be noted that a fixed income means an investment approach that is focused on presentation of capital and income.

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2 years ago
Weaver Corporation had the following stock issued and outstanding at January 1, Year 1:
lesantik [10]

Answer:

Preferred shareholder (7,500*$100)*7%   $52,500

Common shareholder (70,000×$2)          <u>$140,000</u>

Total dividend                                            <u>$192,500</u>

<u />

Date         General Journal                  Debit         Credit

10 June     Dividend                            $192,500

                        To dividend payable                      $192,500

                 (To record dividends payable)

20 June    No entry required

01 July       Dividend payable              $192,500

                         To cash                                           $192,500

                  (To record dividend payment)  

31 Dec      Retained earning               $192,500

                         To dividends                                   $192,500

                (To close dividend account)

7 0
3 years ago
Under the free cash flow approach to valuation: share value equals the present value of all free cash flows. share value is foun
defon

Answer:

The correct answer is option A.

Explanation:

The present value of all free cash flows gives the share value under the free cash flow approach to valuation. It is also called a discounted cash flow valuation.

5 0
3 years ago
You have been hired as a consultant by Feludi Inc.'s CFO, who wants you to help her estimate the cost of capital. You have been
Lisa [10]

Answer:

CAPM=5.6\%

Explanation:

as it is said we must apply the CAPM model, so we have:

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where CAPM is the capital asset pricing model, r_{f} is the risk free of the market, \beta is the relation between the market benchmark and an asset return, and E(r_{m}) is the  expected return of an asset

CAPM=0.041+1.3(0.0525-0.041)

CAPM=5.6\%

8 0
3 years ago
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