Answer:
$2,014
Explanation:
Alain's net investment income tax is the lesser of 1) his net investment income ($53,000) or 2) his modified adjusted gross income less the threshold of $200,000 .
Therefore
$304,000 - $200,000 = $104,000
3.8%×$104,000= $3,952
($53,000 × 3.8% )= $2,014
The additional tax that alain will pay on his net investment income for the year is $2,014
Answer:
B) sale; decrease
- If the Fed wants the federal funds rate to stay at that level, then it should undertake an open market <u>SALE</u> of bonds, everything else held constant. If the Fed does nothing, however, the federal funds rate will <u>DECREASE</u>.
Explanation:
The federal funds rate is the rate at which banks make overnight loans to other banks or financial institutions. If the supply of money is too high, then the interest rates will start to decrease.
Money is like any other good, and its price is determined by the supply and demand. The higher the supply, the lower the equilibrium price. The equilibrium price of money is the interest rate.
If the Fed wants to avoid the decrease in the interest rate, it must absorb excess supply of money, and the only way it can do it is by selling bonds.
Answer:
Letter of Credit is the correct answer.
Explanation:
Answer:
b) bring the factors of production together and take the risks of producing output.
Explanation:
There are basically four factors of production which are required in order to ensure the manufacturing of output, which are land,labor,capital as well as an entrepreneur.
The role of an entrepreneur is to bring together all factors in order to serve the purpose of creating valued-added output that can be sold at a price higher than the cost price in order to make a profit.
All in all, the role of an entrepreneur is not just to provide capital or control land but bring all factors of production together
Answer:
no surplus or shortage
Explanation:
Equilibrium price is the price at which quantity demand equal quantity supplied. Above equilibrium price there is a surplus - quantity supplied exceeds quantity demanded.
Below equilibrium price there is a shortage - quantity demanded exceeds quantity supplied
If demamd increases by 100, new equilibrium is 40
Thus, ceiling price equal equilibrium
Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.
Effects of a binding price ceiling
It leads to shortages
it leads to the development of black markets
it prevents producers from raising price beyond a certain price
It lowers the price consumers pay for a product. This increases consumer surplus
