Answer:
Disposible income.
Marginal propensity to consume.
Disposible income, marginal propensity to consume.
The consumption will increase by $800
Explanation:
The consumption function shows the relationship between consumption spending and disposible income.
The slope of the consumption function is the marginal propensity to consume.
Changes in consumption can be predicted by multiplying the change in disposible income by the marginal propensity to consume.
Given: MPC = 0.80
Disposible income increases by $1,000
consumption increase = 0.80*$1000
= $800
Therefore, The consumption will increase by $800.
Answer: b) Loss of $7,500,000.
Explanation:
The total the investment bank paid when underwriting was:
= 10.50 * 10,000,000 shares
= $105,000,000
The total they then sell to the public is:
= 9.75 * 10,000,000
= $97,500,000
The profit is:
= Selling revenue from public - Buying cost from company
= 97,500,000 - 105,000,000
= -$7,500,000
Answer:
"An economic and monetary union involves the free flow of products and factors of production among member-countries and the adoption of a common external trade policy, but it also requires a common currency, harmonization of members tax codes, and a common monetary and fiscal policy."
Explanation:
A monetary and economic union is a common market with a common currency. Monetary unions have not necessarily created a common market; in fact, the only monetary and economic union in the world is the Eurozone of the European Union, made up of members of the Union who have adopted the euro as their state currency. It is considered one of the most advanced stages of economic integration.
