A tax cut's impact on the economy would typically be weaker if people anticipated that it would only be temporary.
This is due to the fact that fiscal policy often focuses on macroeconomic stabilization, which involves lowering taxes to support a struggling economy and raising taxes to fight inflation.
Taxation and expenditure measures taken by the federal government to stimulate the economy are referred to as fiscal policy.
Discretionary Fiscal Policy is the term used to describe budgetary actions taken by the federal government to alter the status quo economy or to control inflation.
When fiscal policies are put into practice, either government spending is reduced, taxes are raised, or both.
Learn more about Fiscal Policy here
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Answer:
c. The investor will have a direct say in how the companies that the venture capital firm funds will be run
Answer:
The expected return on stock is 30%
Explanation:
Growth rate = Return on Equity * Retention ratio
Growth rate = Return on Equity * (1- Payout ratio)
Growth rate = 25% * (1 - 0.40)
Growth rate = 0.25 * 0.60
Growth rate = 0.15
Growth rate = 15%
Hence, Expected return = Dividend return + Growth rate
Expected return = 15% + 15%
Expected return = 30%
Therefore, the expected return on stock is 30%
D) Salaries
Revenue is the income for your business so you make a profit from fund raisers, donations and fees charged per child. You are losing revenue when you have to pay your workers salaries
