The multiplier applies to the investment, net exports and government spending.
<h3>What is a
multiplier?</h3>
This refers to an economic factor that of increased, it can causes an increases in many other related economic variables.
Hence, in economics, its applies to the investment, net exports and government spending.
Therefore, the Option A is correct.
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Whole life policies provide “guaranteed” cash value accounts that grow according to a formula the insurance company determines. Universal life policies accumulate cash value based on current interest rates. Variable life policies invest funds in subaccounts, which operate like mutual funds.
If Sarah is in the income tax band that has a marginal rate of 24%, the amount of the deduction that must be taken in order to generate a tax advantage that is equivalent to that provided by the child care credit is x = 5000.
This is further explained below.
<h3> What amount of deduction is necessary to provide a tax benefit that is equal to that provided by the child care credit if Sarah is in the 24% marginal income tax bracket?</h3>
Generally, The proportion of an individual's income that must be paid in taxes is referred to as that person's marginal tax rate.
The average tax burden may be conceptualized as the entire tax burden expressed as a proportion of the income that is produced.
Tax: Taxes are payments to the government that is required of all citizens, whether they be people or companies.
In conclusion,
Available deduction = 1200
Deduction rate = 0.24
Amount of money needed for an investment
x= 1200/0.24
x= 5000
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