A grocery store manager must decide whether to buy a rug cleaner to rent to cust

Question

A grocery store manager must decide whether to buy a rug cleaner to rent to customers. The cleaner costs $800. It is expected to yield $200 in income per year. What is the expected annual rate of return from the cleaner? $600 $200 400 percent 75 percent 25 percent Which of the following is not investment spending? an increase in business inventories the extensive renovation of an old factory building the purchase of stock in Potomac Electric Company the construction of a new apartment building the purchase of a new silo for a farm As disposable income increases, consumption and saving both increase consumption increases and saving decreases consumption and saving both decrease consumption decreases but saving increases saving increases, but we cannot predict what happens to consumption A firm's level of investment is tied to the interest rate only when the firm has to borrow funds to buy capital only when the firm has to borrow funds to buy stocks only when the firm already has the funds and could lend them because the interest rate represents the opportunity cost of investing in capital because investments arc always made with borrowed funds Given the data in Exhibit 9-1, the level of saving at a disposable income of $1, 200 is $80 $240 $950 $1, 200 $1, 300 Which of the following is not an example of a government purchase? schools and teacher salaries Chinese toys to be sold in discount department stores aircraft carriers interstate highway construction All the answers are correct Suppose that autonomous investment level is $100 billion per year. If income in the economy the level of investment will increase the level of investment will decrease the quantity of investment demanded will increase the quantity of investment demanded will decrease investment spending will not change An increase in wealth will shift the consumption function upward make the consumption function steeper cause a movement upward along the consumption function cause a movement downward along the consumption function make the consumption function flatter The most important determinant of a household's consumption spending is its disposable income its total wealth the number of persons in the household its net wealth the ratio of wage to nonwage income the household cams The marginal propensity to consume is defined as the fraction of consumption that is spent on goods, both durable and nondurable fraction of a change in income that is spent on consumption fraction of a change in income that is spent on investment average amount of consumption at different levels of income average amount of consumption at a given level of income Which of the following would shift the consumption function downward? a decrease in stock prices a lower interest rate a lower price level lower disposable income expectations of higher future prices Disposable income is the major determinant of consumption spending total salary and wage income minus taxes and transfer payments the income households cam before taxes

Explanation / Answer

12. 200/800 * 100 = 25 %

13.Option no b is correct.

14.Consumption increases and saving decreases.

15.option no d is correct.

9.1 1200-960 =240

17.interstate highway construction

18.Option B is correct.

19.Option A is correct.

20.Option a is correct.

21.Option B is correct.

22.Lower disposable income.

23.Option A is correct.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.