12. Inflation-induced tax distortions Darnell receives a portion of his income from his holdings of interest-bearing U.S. government bonds. The bonds offer a real interest rate of 4% per year. The nominal interest rate on the bonds adjusts automatically to account for the inflation rate. The government taxes nominal interest income at a rate of 20%. The following table shows two scenarios: a low-inflation scenario and a high-inflation scenario. Given the real interest rate of 4% per year, find the nominal interest rate on Darnell's bonds, the after-tax nominal interest rate, and the after-tax real interest rate under each inflation scenario. Inflation Rate Real Interest Rate Nominal Interest Rate After-Tax Nominal Interest Rate After-Tax Real Interest Rate (Percent) (Percent) (Percent) (Percent) (Percent) 1.5 4.0 8.0 4.0 Compared with higher inflation rates, a lower inflation rate will the after-tax real interest rate when the government taxes nominal interest income. This tends to saving, thereby the quantity of investment in the economy and the economy's long-run growth rate.
Based on the given rates to Darnell, the nominal and after-tax real interest rates are:
Inflation rate 1.5%;
Nominal rate = 5.5%.After-tax nominal = 4.4%.After-tax real = 2.9%.Inflation rate 8%;
Nominal rate = 12%.After-tax nominal = 9.6%.After-tax real = 1.6%.What are the rates when inflation is 1.5%?Nominal rate:
= Inflation + Real rate
= 1.5% + 4%
= 5.5%
After-tax nominal:
= 5.5% x (1 - 20% tax)
= 4.4%
After-tax real:
= 4.4% - 1.5% inflation
= 2.9%
What are the rates when inflation is 8%?Nominal rate:
= Inflation + Real rate
= 8% + 4%
= 12%
After-tax nominal:
= 12% x (1 - 20% tax)
= 9.6%
After-tax real:
= 9.6% - 8% inflation
= 1.6%
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2. How are surplus and shortage related to equilibrium price?
3. Why is equilibrium price represented by the intersection of the supply
and demand curves in a particular market?
4. Why do changes in demand or supply cause disequilibrium?
5. Why is the market always moving toward equilibrium? in book of economics
Answer:
1-A surplus exists when the price is above equilibrium, which encourages sellers to lower their prices to eliminate the surplus. A shortage will exist at any price below equilibrium, which leads to the price of the good increasing.
2-The supply curve shows quantity supplied at various prices, and the demand curve shows quantity demanded at various prices, so at the intersection of the two curves, these quantities and prices are equal. Therefore, equilibrium price is represented by the intersection of the supply and demand curves.
3-Changes in demand or supply cause disequilibrium because they create an imbalance between quantity demanded and quantity supplied.
4- The market is always moving towards equilibrium because if the price is too high, there is a surplus and prices tend to fall until the surplus is sold and equilibrium is reached, and if the price is too low, there is a shortage and producers raise prices and increase quantity supplied.
Explanation:
:)
Which action will not protect your credit
what is classification of expenditures and revenues of governmental entities?
Answer:
Herman Eugene Talmadge (August 9, 1913 – March 21, 2002) was an American politician who served as governor of Georgia for a short period in 1947 and then again from 1948 until 1955 then as U.S. Senator from Georgia from 1957 to 1981.
Explanation:
What jobs will increase in demand in the near future?
O Technology, art and service
O Taxi drivers, postal carriers and fast food cooks
O Data entry, door to door sales and electronic equipment assembl
O All of the above
Which of the following are the names given to the two types of stock purchasers?
Answer: Common and Preferred Stock Purchasers
Explanation:
The number and characteristics of sellers and buyers is called market structure.
True or False
Which of the following is true?
Multiple Choice
A Nash equilibrium is always a subgame perfect equilibrium.
A subgame perfect equilibrium is always a Nash equilibrium.
A Nash equilibrium is always a perfect subgame equilibrium in a multistage game.
Subgame perfect equilibrium and Nash equilibrium are the same concept but with different names.
A subgame perfect equilibrium is always a Nash equilibrium. Thus, option (b) is correct.
What is equilibrium?
Equilibrium is the scientific word describing the harmony of force and action. The level of supply and demand must be equal in order for there to be an economic equilibrium. The cost remains steady. Three categories of equilibrium are frequently used: stable, unstable, and neutral. Chemistry and physics both employ the term “equilibrium.”
Because Nash equilibrium play occurs in every subgame, a perfect equilibrium in a subgame is always a Nash equilibrium. A subgame perfect equilibrium is a Nash equilibrium in an extensive form game. Not all games, but the majority of them only have one subgame with a perfect equilibrium.
Therefore, option (b) is correct.
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Comparable balance sheets are presented below:
Dec. 31, 2015 Dec. 31, 2014
Assets
Cash 1.2 1.9
Accounts Receivable 0.4 0.3
Inventory 1.3 1.0
Property, Plant & Equipmen 6.0 3.0
Less: Accumulated Depreciation (0.8) (0.4)
8.1 5.8
Liabilities & Stockholder's Equity
Accounts Payable 2.6 2.1
Dividends Payable - -
Bonds Payable 4.4 2.8
Common Stock, $1 Par Value 0.2 0.1
Paid-in Capital in Excess of Par Value 3.2 2.2
Retained Earnings (2.3) (1.4)
8.1 5.8
Additional Information:
1. The change in PP&E represent cash expenditures for a new factory
2. There were no disposals of PP&E during the year
3. There were no dividends declared during the year
4. The common stock was issued for cash
5. A review of the income statement noted a gross profit margin of
20% and Research & Development costs of $0.7 for the year
Required:
1. Prepare a statement of cash flows using the indirect method
2. Is the operating cash flow sustainable?
3. What are the major sources and uses of cash?
4. How are the operations being financed? Through earnings or other means?
Do you agree with this strtegy?
5. No dividends were declared. Why?
6. Why might the company be losing so much money? Do you agree with their strategy?
7. What are the risks to the company going forward?
The example of how to Prepare a statement of cash flows using the indirect method is given in the image attached.
The others are:
Note that when the operating cash flow is aided by profitable operations, it may not be sustainable. e.g. operating cash gotten from an outsized reduction in accounts receivable cannot be kept or handled.The major sources and uses of cash are:
Operating InvestingFinancingOperations are being financed via the day to day normal operations that brings income. Example are cash receipts from revenue and cash shared to pay for expenses.
The risks of a company going forward includes:
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how we can improve saving culture
Answer:
answer
Here are six ways you can cultivate a savings culture:Here are six ways you can cultivate a savings culture:HAVE A BUDGET.Here are six ways you can cultivate a savings culture:HAVE A BUDGET.CONTRIBUTE MORE TO YOUR RETIREMENT. Stop procrastinating when it comes to retirement planning. ...Financial institutions are reporting that the rate of spending is declining based on customer data. Which of the following is associated with a decline in spending?
Multiple Choice
economic expansion
economic contraction
employment boom
inflation
O job expansion
Financial institutions are reporting that the rate of spending is declining based on customer data it is associated with economic contraction.
What is economic contraction?Economics contraction occurs when the economy for a country is going through a face of reduction or decrease.
The economy is affected and every aspect of business, income is also reducing.
Therefore, Financial institutions are reporting that the rate of spending is declining based on customer data it is associated with economic contraction.
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Why is it important to understand how the global financial system operates? (5 marks)
Answer:
becuase in life you need to know how finances work alll over the world
Explanation:
Abigail buys cookies at a local gas station for $2.00 per pack. At the grocery store, she can get 10 packs for $20. Online, they will ship 15 packs to her
house for $30. What is the BEST financial advice you can give Abigail about purchasing these cookies?
ОА.
She should order them online because she will save money.
OB. She can buy them at any of these merchants; the cost is the same.
OC.
She should get them from the grocery store because they are cheaper there.
She should buy them at the gas station as they're the least expensive there.
OD
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Abigail can buy the cookies at any of the merchants; the cost is the same. hence, Option B is the correct statement.
What do you mean by financial advice?The manner of attractiveness withinside the commercial enterprise of advising others with admiration to the making plans and/or the execution of recommendations in respect of selecting, purchasing, or promoting economic merchandise to satisfy investment, threat management, or threat mitigation objectives is referred to as Financial Advice.
Hence, Abigail can buy the cookies at any of the merchants; the cost is the same. Option B is the correct statement.
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What is labour mobility
Answer:
Labour mobility is the ability and willingness of people to shift from one job to another or from one location to another in order to work.
hope this helps!
Who decides how much money goes to a particular school?
A: The principal of the school
B: The secretary of the district superintendent
C: The superintendent of the district
Profits are maximized when marginal revenue and marginal costs are ______.
a. set
c. equal
bless than market price
d. greater than market price
jamal is thinking about buying a duplex
Answer:
If Jamal is planning on Having another family live in the same house or letting out the second living space that is fine
Explanation:
Jamal could make money that way by having a tenant pay rent. Duplexes are commonly considered as two houses that can operate separately but are connected.
If the government gives a cash subsidy to members of a special interest group, explain how that indirectly harms members of the general public? (4 point)
The money given to the special interest group could have been given to everyone in the country equally
Special interest groups are generally composed of mostly foreign nationals. The money given to the special interest group could have been given to citizens instead
The government could have given the money to a different special interest group instead
Special interest groups generally have opinions that are unfavorable or even harmful to members of the general public. Supporting those groups will most likely cause some form of
harm to the general public
If the government gives subsidies to a special group, the general group will be indirectly harmed because supporting those groups will most likely cause some form of harm to the general public.
What is a Subsidy?A subsidy is a form of financial support from an individual or government extended to some special group or an economic sector with the aim of promoting the economy.
Some special interest groups generally have opinions that are unfavorable or even harmful to members of the general public. so supporting these groups will most likely cause some form of harm to the public.
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A profit maximizing monopoly's price is
The profit-maximizing choice for the monopoly will be to produce at the quantity where marginal revenue is equal to marginal cost: that is, MR = MC.
which of the following is an example of revolving credit?
A. A couple obtains a home mortgage
B. A woman borrows a company car
C. A man uses a personal line of credit
D. A teen gets a loan for college
An example of revolving credit is a man uses a personal line of credit.
What is revolving credit?Revolving credit is the type of credit that lets the borrower choose how much of the credit to use and when to pay it.
It is a type of credit that does not have a fixed number of payments, in contrast to installment credit.
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Answer:
c) A man uses a personal line of credit
Explanation:
also my mom's an accountant and has a degree for fiance
In an attempt to improve the staffing process, your hospital has collected data on the four primary recruitment sources for staffing Food Service personnel. The following table presents those findings for the last 12 month time
period.
Recruitment
Source
Number of
Applicants
Screened
Potentially
Qualified
Took and
Passed
Testing
Took and
Passed
Interview
Phase
Accepted
Employment
Offer
One-Year
Survival
Rate
Phase
29
Employee
referrals
50
26
(52%)
25
(50%)
23
(40%)
Newspaper
ads
32
(50%)
52
(25%)
36
(72%)
97
(46%)
26
(60%)
210
(15%)
26
(12%)
36
(17%)
14
(35%)
Walk Ins
40
12
11
18
(45%)
(30%)
(20%)
State
Employment
Agencies
41
11
100
(41%)
21
(21%)
14
(14%)
(11%)
8
(8%)
Total
400
200
120
90
80
68
1. If you could increase the number of applicants from one of the recruitment sources, which should it be?
OEmployee referrals
ONewspaper ads
Owalk-ins
Ostate employment agencies
Ocannot tell from the data given
2. If you decided to drop one of the recruitment sources, which should it be?
Answer:
State employment agencies
Explanation:
That the answer Plss follow me thanks
In the money market, if the interest rate exceeds the equilibrium interest, there is a surplus of money. How is the surplus eliminated?
A) People buy bonds to rid themselves of the surplus money, bidding up their price and pushing interest rates down.
B) Banks will lend out the surplus, lowering interest rates.
C) The Federal Reserve will destroy currency, reducing the quantity of money.
D) The high interest rate increases the demand for money, eliminating the surplus.
what are the information sources for measuring performance
Answer:
The most common sources of information for performance measurement are personal observation, statistical reports, oral reports, and written reports.
Slide that brainliest tho
Damien is being relocated to a new city abroad for work, and he is going to need a longer-term hotel stay while he acclimates to the new locale and culture. He wants a space that feels like home, but he also wants access to a grocery shopping service and housekeeping since his time will be focused on his new role. Which Marriott property is most likely to meet his needs?
Answer:
Marriott Exc Apts
Marla made a spreadsheet in Excel showing the projected costs for a concert she was putting on. What can Marla enter into cell A11 to find out how much money is left in her budget and to make sure the cell is updated whenever she changes any of the other costs?
=A2-A4-A6-A8-A10
+A2-A4-A6-A8-A10
=A4-A6-A8-A10+A2
+A4-A6-A8-A10=A2
Marla will use the formula to find the updated cost.
=A2-A4-A6-A8-A10
Because A2 is budget and A4, A6, A8 and A10 all are expenses. So she has to budget-all expenses.
So option A=A2-A4-A6-A8-A10 is true.
What is a spreadsheet?A spreadsheet is a computer program that can capture, display and manipulate data arranged in rows and columns. Spreadsheets are one of the most popular tools available with personal computers.
A single spreadsheet can be used as a worksheet to compile data for a purpose, or multiple sheets can be combined to create an entire workbook.
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Principles of Investment
Which characteristic is most imortant in determining an investment's level of risk
Answer:
demand for investments
Explanation:
Hank wanted to make
$75,000 this year.
Instead, he made made
$60,000.
Calculate the variance.
$[?]
Explanation:
Based on the given conditions, formulate;
75000- 60000= 15000
Answer:
based on giving terms the answer to this question is 1500
You are on the team of executives at Star Bank. You have been meeting as a team to discuss
the future of the bank, including big picture goals of how to grow the company. What type of
planning is this?
Strategic planning is the type of planning that involves the meeting on the future of the company and its goals.
What is strategic planning?This is the type of planning that has to do with the strategic planning of specific business goals in an establishment and how to implement the plans.
This is the way that the company would define the goals that they have and how to achieve their plans.
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1. If there is a change in the price of a good, then the supply of that good will change.
True
False
Answer:
True
Explanation:
The change in price level changes the supply of goods. When price level increases, producers or suppliers will be willing to produce and supply more. However, when prices reduce, producers or suppliers may decide to supply less because they wont be making much money as they should if the price level did not fall.
Enumerate the majority of services offered by banks.
Answer:
Checking accounts.
Savings accounts.
Debit & credit cards.
Insurance*
Wealth management.