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pickupchik [31]
3 years ago
5

Suppose economic conditions call for a tax increase but Congress does not implement this measure because an election is approach

ing. This is an example of which of the real-world problems associated with fiscal policy?
Business
1 answer:
Daniel [21]3 years ago
3 0

Answer:

Implementation lag

Explanation:

there are four types of lags associated with fiscal policy

Administrative lag is the time it takes to enact the needed policies. Operational lag is the time it takes for the policy to be enacted to the time the effects are felt in the economy

Recognition lag is the amount of time it takes for authorities to recognise a problem in the economy that needs fiscal policy intervention.

Implementation lag is the amount of time it takes for fiscal policy decisions to be implemented.

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On July 1, 2020, Crocus obtained a $90 million construction loan with a 6% interest rate. The loan was outstanding through the e
enyata [817]

Answer:

$4.5

Explanation:

Interest to be capitalized=$90*6%*10/12=$4.5

As the loan was outstanding from January  to October 2021, therefore interest is worked out for 10 months.

Please note that interest of only those debt instruments are capitalized which have been obtained to finance any construction project under the specific interest method.

In our example $90 is the construction loan therefore only this loan's interest is capitalized.

3 0
3 years ago
Madsen Motors's bonds have 18 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon i
ivolga24 [154]

Answer:

$906.30

Explanation:

Face value (FV) = $1000

Coupon payment (C) = 7% of $1000 = $70

Yield to maturity (r) = 8% = 0.08

t = 18

Number of compounding periods (n) = 1 (annually)

Using the relation:

C[( 1 - (1 + r/n)^-nt) / (r/n)] + FV / (1 + r/n)^nt

70[(1 - (1 + 0.08)^-1*18) / (0.08/1)] + 1000 / (1 + 0.08/1)^1*18

70[1 - (1.08)^-18) / 0.08] + 1000 / 1.08^18

70[(1 - 0.2502490)/0.08] + (1000 / 3.99601949918)

70(9.3718871) + 250.24902

= $906.281117

= $906.30

6 0
2 years ago
Which of the following are correct descriptions of large corporations? (You may select more than one answer. Single click the bo
erik [133]

Answer:

  • The corporation survives even if managers are dismissed.
  • Shareholders can sell their holdings without disrupting the business.

Explanation:

Large corporations are not as easy to dissolve as other types of companies because they have other resources that are able to keep them going if they lose some. One of those resources could be a manager. Should a manager be dismissed, the corporation will survive and simply replaced the dismissed manager.

Also with such corporations, the shareholders can simply sell their shares and the business's operation will not be disrupted as the shareholders do not have any direct say over the day to day running of the business.

4 0
2 years ago
The unrecognized net gain or loss balance must be amortized when it exceeds 10% of the larger of the: beginning accumulated bene
Schach [20]

Answer:

beginning projected benefit obligation or the market-related asset value

Explanation:

The balance of the Unrecognized Net Gain or Loss account subject to amortization only if it exceeds 10% of the larger of the beginning balances of the projected benefit obligation or the market-related value of the plan assets.

Amortization is simply the procedure or the process of retiring a debt or recovering a capital investment. This can be done via scheduled, systematic repayment of the principal or a program of periodic contributions to a sinking fund or debt retirement fund.

4 0
3 years ago
Which of the following is not allowed as an itemized deduction?
Readme [11.4K]
D) magazines can only be deducted if purchased for a business.
7 0
2 years ago
Read 2 more answers
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