An increase of R5 billion in income in a macroeconomy leads to an increase in R3 billion in consumption spending. From this information, we can determine that the marginal propensity to save in this economy is: choose the correct answer (a) 0.6; (b) 0.5; (c) 0.3; (d) 0.4
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An increase of R5 billion in income in a macroeconomy leads to an increase in R3
billion in consumption spending. From this information, we can determine that the
marginal propensity to save in this economy is:
choose the correct answer
(a) 0.6;
(b) 0.5;
(c) 0.3;
(d) 0.4
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Solved in 2 steps
- firm decides to invest X units of capital in Project A and Yunits of labour in Project B. iv. The expected return for each unit of investment is $500 in Project A and $1500 in Project B. However in order to meet the expectations of the firm's ethical and environmental policy values of X and Y must satisfy the constraint x+y-5x-6y= 210. How many units of each type should firm buy in other to maximize total volume? What is the implication of a unit change in investment in capital and (or) Labour Economic Analysis?If the PW of an investment is negative, then we will recommend the investment. True or False?Prominent Sdn Bhd produces furniture at several factories. Its Seberang Prai factoryproduces office chairs. Management aims to increase production in the coming year to 800units per month. Therefore, management is exploring two production strategies for thecoming year. The first strategy is to continue operations with the existing machine, MachineA, and the second strategy is to rent a new machine, Machine B, to produce the office chairs.The monthly rental of Machine B is RM14,000. Machine B takes half an hour to produce oneoffice chair. However, it requires a more skilled labour force with an hourly rate of RM30 perhour.Comparatively, continuing to use Machine A means that costs will remain the same. MachineA is 5 years old and is operating below capacity. The hourly labour rate is RM20 and thematerials required for each unit is RM30. Each office chair is assembled within an hour. Eachunit of the finished office chair is sold for RM120.The fixed monthly running costs of thefactory is…
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