1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Helga [31]
3 years ago
5

Suppose a country has a consumption tax that is similar to a state sales tax. If its government were to eliminate the consumptio

n tax and replace it with an income tax that includes an income tax on interest from savings, what would happen? a. There would be no change in the interest rate or saving. b. The interest rate would decrease and saving would increase. c. The interest rate would increase and saving would decrease. d. None of the above is correct.
Business
1 answer:
Romashka [77]3 years ago
6 0

Answer:

c. The interest rate would increase and saving would decrease.

Explanation:

As we know, the bank profit would come from the savings of the public as they give them the loan or any other mode to the public by applying the higher interest rate which negatively impacts the saving of the public as they have to pay the tax on the saving.

The interest rate would increase through which the general public would save more but it has a negative impact on public saving.  

Hence, the interest rate would increase which impact the saving amount to be decrease

You might be interested in
The market analyst of a chain megastore bakery, called More Dough, asks you to find out why people are choosing to go to smaller
iren2701 [21]

Answer:

The market analyst is requesting you to perform a formal research.

Explanation:

Formal research is a research style used by researchers (and students) that uses a very formal structure in order to carry out a scientific research (or very similar type). Formal research obtains and analyzes data in a controlled and systematic manner, that tries to avoid subjective bias and focuses on objective information.

8 0
2 years ago
During the year, Next Tec Corp. had the following cash flows: receipt from customers, $12,000; receipt from the bank for long-te
Amiraneli [1.4K]

Answer: $6000

Explanation:

Financing activities are all activities that a corporation undertakes to affect the company's long-term liabilities or equity.

You list the following activities

  • receipts from customers
  • receipt from bank for long-term borrowing
  • payment to suppliers
  • payment of dividends
  • payment to workers
  • payment for machinery

Any receipts to customers or payments to suppliers are short-term reimbursements for labor or purchase of product, and as such are not included in the financing activity cash flows. Your payments for machinery are not financing activities either as machinery is not considered a liability, rather, it is an asset for the company.

However, your receipt from the bank for long-term borrowing and payments of dividends affect both long-term liabilities and equity, and those are reflected on the financing cash flows as such

Receipts from the bank for long-term borrowing - $7500

Payment of dividends                                             - ($1500)

Net cash flows from financing activities                - $6000

8 0
2 years ago
PLZ HELP!!! ILL MARK BRAINLY!!
telo118 [61]
Leadership skills,knowledge of a foreign language
5 0
3 years ago
Read 2 more answers
Qualified dividends may be subject to a marginal tax rate of 23.8 percent (20 percent for the capital gain and 3.8 percent tax o
djverab [1.8K]

Answer:

True

Explanation:

Qualified dividends are ordinary dividend that enjoy special tax privilege by being taxed at lower rate. The rate is based on specific tax rate which range from  0% to 20% depending on the income threshold. Though these dividends are taxed based on this specific lower tax rate compare to income tax rate, they are also subjected to net investment income of 3.8% if they earn above certain threshold.

However for dividends to be qualified, it must meet the two requirements given by the Internal Revenue Service (IRS). The requirements are:

*The dividend must have been paid by an entity incorporated in the United States or a qualifying foreign entity.

* The stock must have been held within the minimum holding period specified by the tax law.

So the answer is true because qualified dividends may be subject to a marginal tax rate of 23.8% for taxpayers with income over a certain threshold as explained above.

5 0
3 years ago
Assuming two investments have equal lives, a high discount rate tends to favor Group of answer choices the investment with even
notka56 [123]

Answer:

the investment with large cash flow early

Explanation:

This can be illustrated with an example.

There are 2 investments A and B

The cash flows of A =

Cash flow in year 1 = $50,000

Cash flow in year 2 = 0

Cash flow in year 3 = 0

The cash flows of B =

Cash flow in year 1 = 0

Cash flow in year 2 = 0

Cash flow in year 3 = 50,000

Discount rate for both investment is 40%

Present value of A = $35,714.29

Pesent value for B = $18,221.57

It can be seen that the investment with the higher cash flow early has a higher present value

3 0
2 years ago
Other questions:
  • What is justice? are we achieving it? and what are the costs of justice (cost/benefit analysis)? keep in mind, costs can be reco
    12·1 answer
  • Assume that the market for soybeans is purely competitive. currently, firms growing soybeans are experiencing economic profits.
    8·1 answer
  • John, a construction manager, has been having problems finding quality employees in some of the company's foreign offices. while
    12·1 answer
  • An increase in the number of buyers in a particular market for a good will result in a ___________________ for that good.
    14·1 answer
  • Seminoles Corporation’s fiscal year-end is December 31, 2021. The following is a partial adjusted trial balance as of December 3
    9·1 answer
  • Old Doc White advised you to do your homework before applying for a consumer loan. Which of the following is his main piece of a
    5·1 answer
  • Multiple Choice Questions _which level of management is responsible for establishing a vision for the organization, developing b
    13·2 answers
  • Free 100 points + brainliest to Ambitious or below, will not give brainliest if higher than amb
    7·2 answers
  • . Job 1 pays $50,000 per year and offers 10 days of vacation. Job 2 pays $48,000 per year and offers 25 days of vacation. Which
    7·1 answer
  • In what specific ways do you see yourself as being a part of a globalized world?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!