Answer:
Explanation:
Solution-
According to Senator Jones, the elasticity of taxable income is larger, which means that due to a certain percentage rise in taxes, the taxable income rises by a greater percentage. Also, according to Senator Smith, the elasticity of taxable income is small, which means that due to a certain percentage rise in taxes, the taxable income rises by a smaller percentage.
(I) Under Senator Jones assumptions, due to rise in taxes, the taxable income has risen considerably as compared to Senator Smith assumptions. Thus the estimates of additional revenue from the tax increase will be larger under Senator Jones assumptions, compared to Smith's assumptions.
(ii) Since under Senator Jones assumptions, elasticity of taxable income is large. So due to rise in taxes, there is a significant proportional rise in taxable income under Jone's assumptions compared to Senator Smith assumptions. Thus the costs of the tax increase is borne more under Senator Jones assumptions , compared to Smith's assumptions.
Answer:
$6.64
Explanation:
The applicable formula
A = p x ( 1+ r)^ n
A =amount after 3 months
p=principal amount: $960
r = interest rate : 2.74% per year or 2.74/12 per month =0.23% or 0.0023
n = 3 month
A = $960 x ( 1+ 0.0023) ^3
A =$960 x (1.0023)^3
A =$960 x 1.00691
A=$966.64
compound interest Earned
=$966.64 - $960
=$6.64
Answer:The net worth of Joe and Mike will reduce.
Explanation:
It will reduce because the only asset they both have is the houses in the neighbourhood and since prices have reduced,their net worth will also reduce.
Answer:
a. How much will your 2007 monthly benefit be?
b. In real terms, do your benefits go up, go down, or stay the same?
- Benefits will stay the same because in real terms the adjustment will only match the inflation rate. There is no real increase in the purchasing power of the money received. Inflation decreases the purchasing power of the currency, that means that $100 today buys less than $100 a year ago. If the adjustment only covers the inflation rate, there is no real gain but at least there is no real loss either.
