The crowding-out effect implies that restrictive fiscal policy will reduce real interest rates.
<u>Option: D</u>
<u>Explanation:</u>
The crowding out effect is the circumstances where greater interest rates consequences gives output of a decline in private investment expenditure so as to dampen the initial rise in overall investment expenditure. Authorities often embraces a restrictive fiscal-policy approach and raises spending to stimulate economic activity. This contributes to interest-rate rises. Higher interest rates have a impact on private investment choices. A high magnitude of the crowding-out impact can also result in lower economic revenue.
Answer: book entry
Explanation:
A municipal bond, which is commonly referred to as a muni bond, can be defined as a bond that is issued by a particular territory or local government in order to finance public projects like airports, schools, roads, museums, seaports, and infrastructure. It should be noted that new issues of municipal short term notes are available in book entry form.
Alex, who is single, conducts an activity in 2021 that is appropriately classified as a hobby. The amount of income that Alex must report and the amount of the expenses he is permitted to deduct are:
An activity or business is classified as hobby :
- The owner of the business is not making profit from the business
- When their is no proof as to whether the business owner is making profit
- When the owner does not intend to make profit from the business etc
Based on the given information the revenues or income amount of $18,000 will be the amount that will be reported by Alex as part of the gross income.
While the expenses or property taxed amount of $3,000 is deductible because the deductions are itemized deductions.
Inconclusion Alex, who is single, conducts an activity in 2021 that is appropriately classified as a hobby. The amount of income that Alex must report and the amount of the expenses he is permitted to deduct are:
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Answer:
I ,II and IV
Explanation:
Mortgage backed securities are either a claim for equity in a pool of mortgages, or a duty secured by a pool. Such claims reflect home loan securities. Loans borrow from mortgage lenders and then sell bundles of those loans on the resale market.
Specifically, once those loans are paid off, they sell their claim to the mortgage cash inflows. The issuer of the mortgage needs to maintain the loan, receiving principal and interest payments, and transfers those payments on to the mortgage borrower.
Therefore according to the given situation the correct answer is I, II, IV
