When personal income taxes is increased, there would be a decrease in consumption of $67.
<h3>What is the MPC?</h3>
The marginal propensity to consume is the proportion of the disposable income that is spent. When personal income taxes are increased, there would be a decrease in the disposable income. The decrease in disposable income would reduce the income avalialbe for consumption.
Decrease in consumption = 2/3 x $100 = $67
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Answer:
$0.24 million
Explanation:
Calculation to Determine the additional funds needed (AFN) in millions of dollars for the coming year using Additional Funds Needed (AFN) Equation Method
Additional Funds Needed (AFN) =[ (14/60)(12) - (2/60)(12)]- (0.05)(72)(.6)
Additional Funds Needed (AFN) = ($2.8 - 0.4) -$2.16
Additional Funds Needed (AFN) =$0.24 million
Therefore the additional funds needed (AFN) in millions of dollars for the coming year using Additional Funds Needed (AFN) Equation Method is $0.24 milion
Answer:
a. Is 12 percent an appropriate estimate for next year's Eastern European market share?
No its not, because Loyola is probably not the only company considering expanding its operations over eastern Europe. As more companies start operating there, Loyola's market share will decrease due to increased competition.
b. If not, does it likely overestimate or underestimate the actual Eastern European market share next year?
Loyola's future market share is overestimated because:
- Loyola is not willing to expand their operations and it is basically focusing on their domestic operations (in the US)
- other companies expand their operations and an aggressive market strategy will make them gain market share, which means that Loyola's market share will start to shrink
Answer:
The correct answer is A) Passive.
Explanation:
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