Generally, as income rises, the average propensity to consume Group of answer choices stabilizes decreases increases becomes erratic drops to zero

Q: LO3 Discuss the discounted payback rule and some of its shortcomings. LO4 Explain accounting rates…

A: The payback period is the amount of time it takes for the investment's benefit to recoup its cost,…

Q: For a consumer, utility maximization occurs at O the intersection of two budget lines O the…

A: a point of tangency between the budget line & an indifference curve

Q: e is said to be a normal good if indifference e indifference curves associated with chang on-labor…

A: Leisure refers to the time when an employee is not working can spend the desired time in their own…

Q: If the ordering cost triples in an EOQ model, while the remaining values stay constant, how will the…

A: Economic Order Quantity is a model which aims to minimize the total inventory cost including the…

Q: With a decrease in time preference, the supply of loanable funds will increase.   Select one: True…

A: Loanable funds includes all forms of credit, such as loans, bonds, or savings deposits. There is an…

Q: Consider the graph below – representing the effect monthly rent and expected treasury rate on the…

A: Range of IRR is very large for monthly rent and therefore variability or the effect of rent is also…

Q: According to the pure expectations theory, what would happen if long-term rateswere not an average…

A: Expectation theory: The theory states that the future short term rate will be based on current long…

Q: What does it mean to use the DuPont model to help explain a decrease in ROI?

A: Introduction: DuPont analysis is done to find out the various drivers that account for the return on…

Q: 1. Subsidy on inputs  Identify whether (Select one choice per number) (A) increase inflation (B)…

A: Tax means the mandatory payment made by assesse to the government without expecting anything…

Q: The discount rate is the combination of what two types of discounting?   a. exponential and linear…

A: Discount rates are used for discounting the future cash flows. It helps in determining the time…

Q: Harof activity increases, total variable costs a. decrease. b. remain the same. c. Increases in…

A: Variable costs: Variable costs means costs which changes with the level of output. Variable cost per…

Q: market value

A: Market value refers to the estimated worth of asset, which is based on the willingness of the buyer…

Q: A strong economy leads to Group of answer choices lower productivity higher employment lower…

A: Strong economy means high growth in the economic activity. Economic activity will be improved when…

Q: Present the internal rate of return criterion and its strengths and weaknesses.

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: When the activity level declines within the relevant range, what should happen with respect to the…

A: The company running its operations incurs both variable costs and also fixed costs. The variable…

Q: 1- In the monetary intertemporal model seen in class, explain and illustrate graphically how…

A: The objective of the question is to understand the impact of changes in Total Factor Productivity (z…

Q: Yes, because operating income increases.

A: It is pertinent to note that higher the contribution higher the operating income since fixed cost…

Q: Is it true that All else being equal, an increase in profit margin raise ROE?

A: According to DUPONT Analysis, ROE is the function of three ratios. ROE =profit margin × asset…