Ask Question
BusinessBusiness
29 April, 09:13

If your income increases by $1,500 and you only consume $900 of it, your marginal propensity to consume would be equal to: a. 0.60. b. 0.75. c. 600.00. d. 0.40. e. 0.50.

+4
Answers (1)
  1. 29 April, 12:56
    0
    a. 0.60.

    Explanation:

    Marginal Propensity to Consume is a metric which enables to measure the increase in consumer spending when there is increase in consumer disposable income. The proportion of disposable income with increase in spending is known as marginal propensity to consume.

    The correct answer is 0.60. This is calculated by dividing consumption by the spending.

    Marginal propensity to consume = $900 / $1,500

    Marginal propensity to consume = 0.60.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “If your income increases by $1,500 and you only consume $900 of it, your marginal propensity to consume would be equal to: a. 0.60. b. ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Oklahoma enacts a law requiring all businesses in the state to donate 10 percent of their profits to Protestant churches that provide services to indigent persons. Price-Lo Mart files a law suit to block the enforcement of the law.
Answers (2)
Your friend, Caitlyn, does not think it is important to review her monthly credit card statement. Instead, she just sets up an automatic minimum payment on the 18th of each month. Convince Caitlyn that this is a bad idea.
Answers (1)
Degregorio Corporation makes a product that uses a material with the following direct material standards: Standard quantity 3.7 kilos per unit Standard price $5 per kilo The company produced 6,300 units in November using 23,780 kilos of the material.
Answers (1)
Shoppers at supermarkets often abandon their empty shopping carts at various locations in the parking lot, despite the risk of damage to vehicles or the additional labor cost of retrieving those carts. How might an economist explain this behavior? a.
Answers (1)
Compared to a Direct Unsubsidized Federal Loan, a Direct Subsidized Federal Loan provides which benefits?
Answers (1)
New Questions in Business
Marks Corporation's balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Cash and cash equivalents $ 47 $ 37 Accounts receivable 53 57 Inventory 63 60 Property, plant, and equipment 548 440 Less accumulated
Answers (1)
What happens to prices and wages during an expansion?
Answers (1)
Suppose that the equilibrium price of greeting cards declined at the same time the equilibrium quantity of greeting cards increased. Which one of the following would most likely be responsible? a.
Answers (1)
You plan to borrow $ 2 comma 000 from a bank. In exchange for $ 2 comma 000 today, you promise to pay $ 2 comma 100 in one year. What does the cash flow timeline look like from your perspective? What does it look like from the bank's perspective?
Answers (1)
Which of the following is indicative of a short-term restrictive financial policy? a) purchasing inventory only as needed b) granting credit to more customers c) increased investment in marketable securities d) maintaining a large accounts
Answers (2)
Home » Business » If your income increases by $1,500 and you only consume $900 of it, your marginal propensity to consume would be equal to: a. 0.60. b. 0.75. c. 600.00. d. 0.40. e. 0.50.
Sign Up Forgot Password?