1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Oksi-84 [34.3K]
3 years ago
12

As the marginal propensity to consume (MPC) increases, the spending multiplier:______.a. remains the same. b. increases. c. decr

eases. If the marginal propensity to consume is 0.60, then, assuming there are no taxes or imports, what is the multiplier?
Business
1 answer:
Effectus [21]3 years ago
5 0

Answer:

b. increases ; 2.5

Explanation:

MPC stands for Marginal Propensity to Consume. In economics, the MPC may be defined as the metric that quantifies the induced consumption. It is the concept that determines that the increase in the spending of personal consumer occurs with increase in the disposable income.

It is estimated that as the MPC increases, the spending multiplier also increases. MCP is the ratio of consumption function to the disposal income change. When the MCp is 0.6, then the multiplier becomes 2.5 if there is no imports and taxes involved.

You might be interested in
During January 2016, Wells Corporation purchased $200,000 of inventory; they paid one-fourth in cash, and signed a note for the
ivanzaharov [21]

Answer:

Inventory                        $200,000    

Cash                                                      $50,000

Notes payable                                      $150,000

Explanation:

Data provided in the question:

Cost of the inventory purchased = $200,000

Amount paid in cash =  one-fourth

= one-fourth of $200,000

= $50,000

For the remaining balance signed a note i.e = $200,000 - $50,000

= $150,000

Now,

This transaction will be recorded as:

Inventory                        $200,000    

Cash                                                      $50,000

Notes payable                                      $150,000

3 0
3 years ago
Factors that cause the rivalry among competing sellers to be weak include: Group of answer choices slow growth in buyer demand a
Airida [17]

Answer:

slow growth in buyer demand, weakly differentiated products among rival sellers.

Explanation:

There a number of causes that relate to the firms rivalry among its competitors.

1. Barriers to entry.

2. Bargaining power of the buyers.

3. Bargaining power of the suppliers.

4. Threat of substitutes.

5. Slow industry growth.

6. Lack of differentiation and switching costs.

7. Diverse competitors.

8. High strategic stakes.

7 0
3 years ago
The number of suppliers that enter and leave the market has no effect on the number of goods or services supplied.
Kobotan [32]

Answer:False

Explanation:

5 0
3 years ago
Read 2 more answers
A company purchased factory equipment on April 1, 2021 for $175000. It is estimated that the equipment will have a $25000 salvag
bija089 [108]

Answer:

b. $11250

Explanation:

Capitalized Cost of Equipment = $175,000

Life of Assets = 10 years

Residual value = $25,000

Depreciable value = Cost - Salvage value

Depreciable value = $175,000 - $25,000

Depreciable value = $150,000

Depreciation per year = Depreciable value / Life of assets

Depreciation per year = $150,000/10 years

Depreciation per year = $15,000

Depreciation from April to December 2021 = $15,000*9/12

Depreciation from April to December 2021 = $11,250

3 0
2 years ago
Eight-year-old Ella can use scissors to cut small paper dolls out of craft paper, something she could not do at age three. What
Romashka [77]

Answer: Increased myelination of the central nervous system

Explanation: skill in performing tasks, especially with the hands is what is known as dexterity. According to the question Eight-year-old Ella can use scissors to cut small paper dolls out of craft paper, something she could not do at age three was due to her Increased myelination of the central nervous system. Her dexterity has improved, Myelin has enabled her nerve cells to transmit information faster and allows for more complex brain processes

3 0
3 years ago
Other questions:
  • Product costs are always expensed in the period when they are incurred. (2pts) true false
    10·1 answer
  • A high-profile consulting company chooses its new entry-level employees from a pool of recent college graduates using a five-ste
    12·1 answer
  • JumpIn Products is a market leader in playground equipment, which is typically large, bulky, and very heavy. In order to compete
    15·1 answer
  • Name three factors that can contribute to increased productivity in a country?
    14·1 answer
  • Holding other factors constant, if new technology becomes available that allows machines to produce manufactured goods more quic
    14·1 answer
  • This revenue model provides professional services on a time and materials contract. a. utility and usage revenue model b. franch
    15·2 answers
  • Crane Roofing is faced with a decision. The company relies very heavily on the use of its 60-foot extension lift for work on lar
    11·1 answer
  • Learners with a _____ learning style prefer reading, writing, and speaking. naturalistic logical/mathematical verbal/linguistic
    10·1 answer
  • 2. Should the U.S. government support U.S. tobacco company interest abroad if they are using harmful tactics
    12·1 answer
  • The effect of a Pigovian tax on a market is: Group of answer choices increased price and quantity to the efficient level decreas
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!