If a $1,000 increase in income leads to an $800 increase in consumption expenditures, then marginal propensity to consume is 0.8.
Given that a $1,000 increase in income leads to an $800 increase in consumption expenditures.
We are required to find the marginal propensity to consume.
Marginal propensity to consume is the ratio of increase in consumption and the increase in income. It is also known as MPC.
MPC=ΔC/ΔI
ΔC=Change in consumption
ΔI= Change in income.
MPC=800/1000
=0.8
Hence if a $1,000 increase in income leads to an $800 increase in consumption expenditures, then marginal propensity to consume is 0.8.
Learn more about marginal propensity to consume at brainly.com/question/17930875
#SPJ4
Answer:
1. A) Satisfying your day-to-day spending needs?
<u>Statement Savings account </u>
Bank statements will hep you keep track of the balance.
B) Making and holding funds for your car purchase?
<u>NOW Account.</u>
An account that earns interest yet allows the owner to write drafts against the money in the account. This would be good here as it will increase the funds you are saving for the car purchase.
C) Making and holding funds for your home purchase?
<u>NOW Account. </u>
NOW stands for Negotiable Order of Withdrawal account and would work here as well.
D) Making and holding funds for your retirement?
<u>Certificate of Deposit.</u>
These are offered by banks and earn a higher interest return. They however have to be locked up for a while without withdrawing so they are great for retirement saving.
2. Which of the following accounts is typically not insured?
<h2>
A. Mutual Funds.</h2>
Mutual funds are not financial deposits so will not be covered by the Federal Deposit Insurance Corporation (FDIC).
3. Which of the following practices would help you keep accurate records regarding the funds in your bank account?
- A. Keep track of your balance online.
- B. Immediately record the date and amount of each transaction in your check register and calculate the new balance.
4. You can avoid a service fee on an average-balance account if you:
- B. Keep a certain average daily balance in the account through a specified time
Answer:
I believe it is social media.
Explanation:
Word processing is similar to auto correct. File systems is referring to files on a laptop or phone. Cloud storage is allowing access to photos and other information to our other devices. Therefore your answer would be B.
Answer:
Amber's offer actually represents $4,500 more after tax money than Khalid's original claim ($158,500 vs $154,000).
Explanation:
Khalid originally demanded:
- $50,000 for pain and suffering = no taxes charged*, net $50,000
- $90,000 for loss of income = $90,000 x (1 - 35%) = $58,500
- $70,000 for punitive damages = $70,000 x (1 - 35%) = $45,500
net income after taxes = $154,000
Amber's offer:
- $100,000 for pain and suffering = no taxes charged*, net $100,000
- $90,000 for loss of income = $90,000 x (1 - 35%) = $58,500
net income after taxes = $158,500
*Money settlements resulting from pain and suffering damages are not taxed.