Answer:
2. Interest income will drop by less than $3 million for a sudden 1% drop in market interest rates
Explanation:
Since in the question it is mentioned that there is decrease in 2021 interest income of $3 million in the case when there is a sudden decline of 1% in the rate of interest of the market this is due to the convexity of the curve as the GAP analysis and assume straight line
So the option 2 is correct
Answer:
$80 billion
Explanation:
Okun law equation: GDP gap = Actual GDP * ((Unemployment rate - Natural rate)/100)*2)
GDP gap = $4,000 * ((6-5)/100*2)
GDP gap = $4,000 * 0.02
GDP gap = $80 billion
Therefore, $80 billion in an output level thus, would be what the economy would have sacrificed.
Answer: All of a country's citizens pay the <u>government</u> an income tax that is 7% of their annual earnings. This tax is a <u>Proportional</u> tax.
<u>Explanation:</u>
The government of a country receives revenue in many forms. With this revenue, the government provides services to the people of the country and works for their betterment. One of the modes of income of the government is the taxes that the people pay to the government.
The citizens of the country have to pay a certain percentage of the income that they on an annual basis. That percentage is 7% of the annual earnings to the government in the form of taxes. This form of tax is proportional tax because only a certain proportion of the total income is to be paid by the people to the government. In return the government has to provide services like building roads, tracks, providing street lights and so on which is to make the lives of the people easier and better.
Answer:
$306,000
Explanation:
To determine manufacturing costs, consider only those cost that can be directly traced to the product manufactured and plant related costs.
<u>Total Manufacturing Cost Calculation :</u>
Factory Utilities $11,400
Indirect Materials $39,500
Direct Materials $166,400
Equipment Depreciation $47,000
Direct labor $91,700
Total Manufacturing Cost $306,000
