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GalinKa [24]
3 years ago
13

if Dawn's disposable income increases from $30,000 to $35,000 what is his marginal propensity to consume if he spends $4,000 of

the increase on consumer products?
Business
1 answer:
irina [24]3 years ago
8 0

Answer:

Marginal Propensity to Consume = 0.8

Explanation:

Marginal propensity to consume (MPC) exhibits consumer's spending behavior as to what percentage of extra dollar is spent from extra dollar of income.

MPC is calculated as Increase in consumption divided by increase in income.

MPC: Increase in consumption / increase in income: 4,000 / 5,000

MPC = 0.8

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Answer:

Delphi method

Explanation:

Delphi method is defined as a structured communication technique. Initially it was developed as a interactive forecasting method which uses a panel of experts.

This method can also be used for face to face meetings.

Questionnaires are sent to panel of experts, anonymous responses are aggregated and presented to the group after each round. Questionnaires bare often sent through mail.

In this scenario where Fern wants to work with a group of experts to find the best solution for a quality assurance problem with her company's new product, the best option will be to use the Delphi method.

5 0
3 years ago
In order to encourage employee ownership of the company’s $1 par common shares, Washington Distribution permits any of its emplo
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Answer:

The appropriate journal entry to record the March purchases of shares under the employee share purchase plan are as follows:

Debit: Cash ($12 × 85%) × $50,000 = $510,000

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Credit: Common Stock = $50,000

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3 years ago
Tax planning Question 6 options: guides investment activities to maximize after-tax returns over the long term for an acceptable
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Answer:

guides investment activities to maximize after-tax returns over the long term for an acceptable level of risk

Explanation:

Given that the purpose of Tax planning is to ensure that there is tax efficiency for the firm, in an after-tax evaluation, the goal of the firm in terms of returns or profits is toll achieved.

Hence, in this case, the correct answer to the question is that TAX PLANNING "guides investment activities to maximize after-tax returns over the long term for an acceptable level of risk."

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3 years ago
If an investment of $35,000 is earning an interest rate of 8.00%, compounded annually, then it will take for this investment to
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Answer:

Therefore the required time period is 3 years.

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To calculate the number of period we are using the following formula of future value

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r = rate of interest = 8.00% = 0.08

n= number of periods = ?

Future value = $44,089.92

Substituting the values in the formula

44,089.92= 35,000(1+0.08)^n

\Rightarrow (1+0.08)^n=\frac{44089.92}{35000}

\Rightarrow(1.08)^n = 1.259712

\Rightarrow (1.08)^n=(1.08)^3

\therefore n= 3

Therefore the required time period is 3 years.

6 0
3 years ago
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