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kherson [118]
2 years ago
14

Demand and supply in the market for​ _______ determine the​ long-term real interest rate. In the short​ run, a change in the​ __

_____ changes the equilibrium real interest rate.
Business
1 answer:
ale4655 [162]2 years ago
3 0

Demand and supply in the market for​ Loanable fund determine the​ long-term real interest rate. In the short​ run, a change in the​ Federal funds changes the equilibrium real interest rate.

<h3>What is federal funds?</h3>

Federal funds, often directed to as fed funds, exist as surplus reserves that commercial banks and other financial institutions deposit at regional Federal Reserve banks; these funds can be lent, then, to other market parties with inadequate cash on hand to satisfy their lending and reserve needs.

Loanable funds consist of household savings and/or bank loans. Because investment in new capital goods exists frequently made with loanable funds, the demand and supply of capital are often examined in terms of the demand and supply of loanable funds. In economics, the loanable fund's doctrine exists as a theory of the market interest rate. According to this procedure, the interest rate is specified by the demand for and supply of loanable funds. The term loanable funds contain all conditions of the credit, such as loans, bonds, or savings deposits.

Hence, Demand and supply in the market for​ the Loanable fund define the​ long-term real interest rate. In the short​ run, a change in the​ Federal funds alters the equilibrium real interest rate.

To learn more about federal funds refer to:

brainly.com/question/6270391

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Who is responsible for withholding the employees income tax?​
julia-pushkina [17]
An employer's federal payroll tax responsibilities include withholding from an employee's compensation and paying an employer's contribution for Social Security and Medicare taxes under the Federal Insurance Contributions Act (FICA).

Employers have numerous payroll tax withholding and payment obligations. Of the utmost importance is the proper payment of what are commonly known as FICA taxes. FICA taxes are somewhat unique in that there is required withholding from an employee's wages as well as an employer's portion of the taxes that must be paid.

The Federal Insurance Contributions Act (FICA) is the federal law requiring you to withhold three separate taxes from the wages you pay your employees. FICA is comprised of the following taxes:

6.2 percent Social Security tax;
1.45 percent Medicare tax (the “regular” Medicare tax); and
Since 2013, a 0.9 percent Medicare surtax when the employee earns over $200,000.
You must withhold these amounts from an employee's wages.

The law also requires you to pay the employer's portion of two of these taxes:

6.2 percent Social Security tax
1.45 percent Medicare tax (the “regular” Medicare tax).
As you can see, the employer’s portion for the Social security tax and the regular Medicare tax is the same amount that you're required to withhold from your employees' wages. (Different rules apply for employees who receive tips.) There is no employer portion for the 0.9 percent Medicare surtax on high-earning employees.

In other words, you withhold a 6.2 percent Social Security tax from your employee’s wages and you pay an additional 6.2 percent as your employer share of the tax (6.2 employee portion + 6.2 employer portion = 12.4 percent total). Also, you withhold a 1.45 percent Medicare tax from your employee’s wages and you pay an additional 1.45 percent as your employer share (1.45 employee portion + 1.45 employer portion = 2.9 percent total). The total of all four portions is 15.3 percent (6.2 percent employee portion of Social Security + 6.2 percent employer portion of Social Security + 1.45 percent employee portion of Medicare + 1.45 percent employer portion of Medicare = 15.3 percent).

Unlike the other FICA taxes, the 0.9 percent Medicare surtax is imposed on the employee portion only. There is no employer match for the Medicare surtax (also called the Additional Medicare Tax). You withhold this 0.9 percent tax from employee wages and you do not pay an employer’s portion. Also, unlike the other FICA taxes, you withhold the 0.9 percent Medicare surtax only to the extent that wages paid to an employee exceed $200,000 in a calendar year. You begin withholding the surtax in the pay period in which you pay wages in excess of this $200,000 “floor” to an employee and you continue to withhold it each pay period until the end of the calendar year.

4 0
3 years ago
The Federal National Mortgage Association (Fannie Mae) was originally established to provide a secondary market for FHA-insured
Crazy boy [7]

The statements regarding Fannie Mae loan are true except that A. Fannie Mae lends money directly to homebuyers.

<h3>How to illustrate the information?</h3>

It should be noted that Federal National Mortgage Association (Fannie Mae) was established to provide a secondary market for FHA-insured and VA-guaranteed loans.

Fannie Mae fully guarantees timely payment of interest and principal to investors and is authorized to buy both conventional home loans and government-sponsored

In conclusion, the correct option is A.

Learn more about loan on:

brainly.com/question/26011426

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3 0
2 years ago
When automakers offer special price reductions on all their automobiles during holiday shopping seasons, they are using the ____
ICE Princess25 [194]
Discount pricing strategy
7 0
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Brainstorm Company purchased office furniture and equipment for $20,000 and agreed to pay for the purchase by making six annual
Studentka2010 [4]

Answer:

The required annual installment payment is $4067.25.

Explanation:

annual installment = (20000×6%)/(1 - (1 + 6%)^6)

                               = $4067.25

Therefore, the required annual installment payment is $4067.25.

4 0
3 years ago
Create a cash flow statement for your own finances. Why are cash flow statements useful in managing money?
trapecia [35]
Answer:

Cash flows tell us about the company’s actual outflows and inflows of cash in particular period such as quarter or year or others. This very important for business as cash flow from main operations helps the company to see whether they are generating enough to invest in growth projects or not.
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