Answer:
positive relationship between consumption and disposable income
Explanation:
The consumption function shows the relationship between consumer spending and disposable income.
the formula used to calculate consumption function is:
C = A + MY
- C = consumer spending
- A = autonomous spending
- M = MPC or marginal propensity to consume
- Y = disposable income
The consumption function has a upward slope since the relationship between consumer spending and disposable income is always positive, i.e. the more disposable income you have, the more you will consume.
The next step in the purchase process will be to identify and determine the potential suppliers.
<h3>What is a purchase process?</h3>
It should be noted that that purchasing process simply has to do with the buying of goods and services.
In this case, in the purchase process, once the company's needs have been identified and product specifications have been outlined, the next step would be to identify and determine the potential suppliers.
Learn more about purchase on:
brainly.com/question/1489991
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<span>Needs range from basic survival needs (common to all human beings) satisfied by necessities, to cultural, intellectual, and social needs (varying from place to place and age group to age group) satisfied by necessaries. Needs are finite but, in contrast, wants (which spring from desires or wishes) are boundless.</span>
Answer:
Annuity per period (A) = $2,500
Interest rate (r) = 5.5% = 0.055
Number of years (n) = 3 years
Present value (PV) = ?
The amount to be paid for the annuity
PV = A<u>(1 + r)</u>n - 1
r
PV = $2,500<u>(1 + 0.055)</u>3 - 1
0.055
PV = $2,500<u>(1.055)3 - 1</u>
0.055
PV = $2,500<u>(1.174241375 - 1)</u>
0.055
PV = $2,500 x 3.168025
PV = $7,920.06
Explanation:
The present value of an annuity equals annuity per period multiplied by present value of annuity factor at 5.5% for 3 years. In this case, the annuity per period, interest rate and number of years were provided in the question with the exception of present value. The present value becomes the subject of the formula.