answer.
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
pishuonlain [190]
1 year ago
14

Suppose that disposable income, consumption, and saving in some country are $800 billion, $700 billion, and $100 billion, respec

tively. Next, assume that disposable income increases by $80 billion, consumption rises by $64 billion, and saving goes up by $16 billion. What is the economys MPC? Its MPS?
Business
2 answers:
Jobisdone [24]1 year ago
7 0

Answer:

MPC = 0.8

MPC = 0.2

Explanation:

Marginal propensity to consume is the proportion of an increase in income that is spent on consumption.

Marginal propensity to consume = increase in consumption / increase in disposable income

Marginal propensity to save is the proportion of an increase in income that is saved.

Marginal propensity to save = increase in savings / increase in disposable income

Disposable income is either consumed or saved. so,

Marginal propensity to consume + marginal propensity to save = 1

Marginal propensity to consume = $64 / $80 = 0.8

Marginal propensity to save = $16 / $80 = 0.2

I hope my answer helps you

Masja [62]1 year ago
6 0

Answer: MPC = 0.8 ; MPS = 0.2

Explanation:

Given the following ;

Increase in disposable income = $80 billion

Increase in consumption = $64 billion

Increase in savings = $16 billion

The disposable income of a country can be regarded as the that part of a country's or an individual's income which isn't subject to any sort of deduction such tax which one can decide to save, spend on consumption or investment.

Marginal Propensity to Consume(MPC) = ratio of the tendency of an economy or individual to spend on consumption with change in value or amount of disposable income

MPC = Increase in consumption /increase in disposable income

MPC = $64 billion / $80 billion = 0.8

2. Marginal Propensity to Save(MPS) = ratio of the tendency of an economy or individual to save its income with change in value or amount of disposable income

MPS = Increase in saving /increase in disposable income

MPS = $16 billion / $80 billion = 0.2

Summing up both MPS and MPC will always give a value of 1, As disposable income are always placed in either of the two categories : Consumption or Saving.

You might be interested in
Fedex developed a 12-item statistical service quality indicator to measure customer satisfaction and service quality. the index
nikitadnepr [17]

Answer:

The correct option is B: Gap 2

Explanation:

The gaps model of service quality, which is also referred to as the 5 gaps model is a vital framework used by organization to ensure customer satisfaction. The Gap 2 model is normally between the perception of the management and what the actual experience of the customer is. In the Gap 2, managers always ensure that organization are delivering and defining the level of quality service they need. From the question Fedex is dealing with actual customer-defined performance standards and this indicates that they are a closing provider of the gap 2 of the gaps model of service quality.

8 0
2 years ago
"Swiss Clothing Store had a balance in the Accounts Receivable account of $920,000 at the beginning of the year and a balance of
Fudgin [204]

Answer:

Receivable days are 52 days.

Explanation:

Receivable days can be found from the following formula:

Receivables days = Receivables / Credit Sales * 365

The credit sales here is $6,650,000 during the year and the average receivables days is $950,000 [(950,000 + 980,000)/2] during the year. By putting the values we have:

Receivables days = $950,000 / $6,650,000  * 365 = 52 days

So the average receivable collection days were 52 days during the year.

6 0
2 years ago
Maynard Enterprises paid $1,328 in dividends and $969 in interest over the past year. The common stock account increased by $1,2
quester [9]

Answer:

$995

Explanation:

Net income comprises of the dividends declared and the retained earnings. Dividends and retained earning are obtained from a company's net income. In other words, net come is retained earning plus dividends declared.

Interest paid is an expense that is factored when computing the net income. The common stock account does not relate to the net income.

For Maryland enterprises, net income will be dividend declared plus the change in retained earnings.

i.e., net income =$1,328 +(-333)

=$1,328-333

=$995

3 0
2 years ago
Sharon contributed property to the newly formed QRST Partnership. The property had a $100,000 adjusted basis to Sharon and a $16
Flura [38]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

3 0
2 years ago
As an HR specialist at a large auto manufacturer, you have noticed that many of the technicians employed by your firm are bored
amid [387]

Answer:

A. Implementing a job rotation program

Explanation:

Implementing a job rotation program basically gives a view of the entire business, it cross-train employees and nurtures a future talent for improvement. It can be beneficial to both employer and employee.

6 0
2 years ago
Other questions:
  • Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $47,500.
    10·1 answer
  • Most operating decisions of management focus on a narrow range of activity called the______________.
    15·1 answer
  • (1) : (2) : (3)DI - C : DI - C : DI - C$0 - $4 : $0 - $65 : $0 - $210 - 11 : 80 - 125 : 20 - 2020 - 18 : 160 - 185 : 40 - 3830 -
    7·1 answer
  • Whispering Corporation had income from continuing operations of $10,775,400 in 2020. During 2020, it disposed of its restaurant
    12·1 answer
  • The subscription manager at Cosmopolitan magazine keeps track of the subscription renewal rate, which is a good measure of custo
    6·2 answers
  • Excavation, Inc., uses explosives to prepare land for construction projects. Strict liability is imposed on this activity becaus
    15·1 answer
  • Select the correct answer.
    14·1 answer
  • To be competitive, ____________ recommended that American firms adopt a new management style that was a hybrid of the approaches
    8·1 answer
  • 1. Describe Village Volvo's service package.
    5·1 answer
  • Advika is a resident of India who exports hand-dyed fabrics to other nations. Since India has an exchange control system, what d
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!