(a) To write: Disposable income rises by $100, and consumption by $75. The value of marginal propensity to consume.

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Answer 1

Question

Chapter 9, Problem 10E

To determine

(a)

To write:

Disposable income rises by $100, and consumption by $75. The value of marginal propensity to consume.

To determine

(b)

To write:

Disposable income falls by $100 and consumption falls be $50. The value of marginal propensity to consume.

To determine

(c)

To write:

Savings is $20 when disposable income is $100; savings is $40 when disposable income is $300. The value of marginal propensity to consume.

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Jim's Bank Account for the Year to 30 April 2008: We will start by calculating the balance of the business bank account, using the transactions provided. Opening Balance: Jim initially deposited €150,000 into his business bank account on 1 May 2007. Transactions: Receipts: Cash Sales (May 2007 to April 2008): €96,000 Credit Sales (Business customers): €19,600 (Note: This amount is not yet received as it is on credit, but it will be included in the Income Statement and not the bank balance at this stage.) Bank receipts from credit customers (amount owed at 30 April 2008): €6,800 Total Receipts:€96,000 (Cash Sales) + €6,800 (credit customer payments) = €102,800 Payments/Expenditures: Lease Payment (Paid in advance for five years): €50,000 Shop Fitting: €10,000 Assistant’s Wages: €250 per month × 12 months = €3,000 Telephone expenses: €800 Heat & Light expenses: €1,000 Jim’s withdrawals for personal expenditure: €1,000 × 12 months = €12,000 Accounting Fee (after the year-end):…

Answer 2

Question

Chapter 9, Problem 10E

To determine

(a)

To write:

Disposable income rises by $100, and consumption by $75. The value of marginal propensity to consume.

To determine

(b)

To write:

Disposable income falls by $100 and consumption falls be $50. The value of marginal propensity to consume.

To determine

(c)

To write:

Savings is $20 when disposable income is $100; savings is $40 when disposable income is $300. The value of marginal propensity to consume.

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Answer 3

Question

Chapter 9, Problem 10E

To determine

(a)

To write:

Disposable income rises by $100, and consumption by $75. The value of marginal propensity to consume.

To determine

(b)

To write:

Disposable income falls by $100 and consumption falls be $50. The value of marginal propensity to consume.

To determine

(c)

To write:

Savings is $20 when disposable income is $100; savings is $40 when disposable income is $300. The value of marginal propensity to consume.

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Answer 4

Question

Chapter 9, Problem 10E

To determine

(a)

To write:

Disposable income rises by $100, and consumption by $75. The value of marginal propensity to consume.

To determine

(b)

To write:

Disposable income falls by $100 and consumption falls be $50. The value of marginal propensity to consume.

To determine

(c)

To write:

Savings is $20 when disposable income is $100; savings is $40 when disposable income is $300. The value of marginal propensity to consume.

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Answer 5

Chapter 9, Problem 10E

To determine

(a)

To write:

Disposable income rises by $100, and consumption by $75. The value of marginal propensity to consume.

To determine

(b)

To write:

Disposable income falls by $100 and consumption falls be $50. The value of marginal propensity to consume.

To determine

(c)

To write:

Savings is $20 when disposable income is $100; savings is $40 when disposable income is $300. The value of marginal propensity to consume.

Answer 6

Chapter 9, Problem 10E

To determine

(a)

To write:

Disposable income rises by $100, and consumption by $75. The value of marginal propensity to consume.

Answer 7

Chapter 9, Problem 10E

To determine

(a)

To write:

Disposable income rises by $100, and consumption by $75. The value of marginal propensity to consume.

Answer 8

To determine

(b)

To write:

Disposable income falls by $100 and consumption falls be $50. The value of marginal propensity to consume.

Answer 9

To determine

(b)

To write:

Disposable income falls by $100 and consumption falls be $50. The value of marginal propensity to consume.

Answer 10

To determine

(c)

To write:

Savings is $20 when disposable income is $100; savings is $40 when disposable income is $300. The value of marginal propensity to consume.

Answer 11

To determine

(c)

To write:

Savings is $20 when disposable income is $100; savings is $40 when disposable income is $300. The value of marginal propensity to consume.

Answer 12

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Ch. 9 - Prob. 1E Ch. 9 - Prob. 2E Ch. 9 - Prob. 3E Ch. 9 - Prob. 4E Ch. 9 - Prob. 5E Ch. 9 - Prob. 6E Ch. 9 - Prob. 7E Ch. 9 - Prob. 8E Ch. 9 - Prob. 9E Ch. 9 - Prob. 10E

(a) To write: Disposable income rises by $100, and consumption by $75. The value of marginal propensity to consume.

Solution Summary: The author explains that disposable income rises by 100, and consumption by 75. The value of marginal propensity to consume is 0.75.

(a)

To write:

Disposable income rises by $100, and consumption by $75. The value of marginal propensity to consume.

(b)

To write:

Disposable income falls by $100 and consumption falls be $50. The value of marginal propensity to consume.

(c)

To write:

Savings is $20 when disposable income is $100; savings is $40 when disposable income is $300. The value of marginal propensity to consume.

Chapter 9 Solutions

(a) To write: Disposable income rises by $100, and consumption by $75. The value of marginal propensity to consume.

Solution Summary: The author explains that disposable income rises by 100, and consumption by 75. The value of marginal propensity to consume is 0.75.

(a) To write: Disposable income rises by $100, and consumption by $75. The value of marginal propensity to consume.

(b) To write: Disposable income falls by $100 and consumption falls be $50. The value of marginal propensity to consume.

(c) To write: Savings is $20 when disposable income is $100; savings is $40 when disposable income is $300. The value of marginal propensity to consume.

Chapter 9 Solutions

(a)

To write:

Disposable income rises by $100, and consumption by $75. The value of marginal propensity to consume.

(b)

To write:

Disposable income falls by $100 and consumption falls be $50. The value of marginal propensity to consume.

(c)

To write:

Savings is $20 when disposable income is $100; savings is $40 when disposable income is $300. The value of marginal propensity to consume.