Answer:
A.- Randy can deduct $30,200 The interest on the loan of the car is nondeductible personal interest, but he can deduct all $28,000 on the home loan as an itemized deduction. The $4,200 of margin interests is likely investment interest, and this itemized deduction is limited oto net investment income. $2,200 of interest income qualifies as investment income and he apparently has no other invesstment expenses, the investment interest expense would be limited to Randy´s $2,200 in net investment.
B. He may deduct all %28,000 of his interest on the home loan
Answer:
1. Increasing
2. A. The elasticity of private saving with respect to the after-tax real interest rate
B. The response of private saving to changes in the government budget deficit
C. The elasticity of investment with respect to the interest rate
Explanation:
1. It is difficult to implement both of these policies at the same time because reducing taxes on private spending has the effect of <u><em>Increasing</em></u> the government budget deficit.
A Government budget deficit is acquired when the government spends more than it earns. The Government earns money from taxes and if it spends more than it receives in taxes, that will lead to a deficit. If taxes on Private spending are reduced, this will lead to less tax revenue for the government thereby increasing the Deficit.
2. All of the listed options are useful in determining which policy would be a more effective way to raise investment.
The elasticity of private saving with respect to the after-tax real interest rate refers to how much private saving changes in reaction to a change in the tax rates. This can enable one decide how much investment will be expected if the Government reduces or increases taxes.
The response of private saving to changes in the government budget deficit is also a useful factor to look at because private savings reduce when government deficits reduce.
Also how much does investment change by due to interest rates. This will be important to note in terms of Private Investment to see if it will be beneficial to use it over reducing the government budget deficit given a certain interest rate.
Answer:
True
Explanation:
The ability to produce goods or services at a lower opportunity cost means that one uses fewer inputs in the production process. It implies that the individual uses less of the factors of production, such as labor, capital, or land, as compared to others in the manufacturing process. Having a lower opportunity cost of production makes the output costs be lower compared to that of others.
An individual or company will lower costs is able to sell its products at a lower price than competitors. If another party has a lower opportunity cost for producing an item, their selling cost is lower than the production cost of others. It is, therefore, economical to buy from a party with a lower production cost than to produce.
Two people with different opportunity costs of producing different items will be prudent to trade than to compete with each other.
Well, An angle formed by two rays emanating from a vertex.In a planar geometry, an angle is the figure formed by two rays, called the sides of the angle, sharing a common endpoint, called the vertex of the angle.[1] Angles formed by two rays lie in a plane, but this plane does not have to be a Euclidean plane.