Investment will decline if savings also decline when a government's fiscal policy switches from a budget surplus to a budget deficit and the trade deficit stays steady.
<h3>What occurs if there is a budget surplus or deficit for the government?</h3>
- A budget deficit occurs when the federal government spends more money than it takes in from taxes in a given year.
- In contrast, the government has a budget surplus when it collects more taxes than it spends in a single year.
<h3>What distinguishes a budget surplus from a budget deficit?</h3>
A government experiences a budget surplus when its tax revenues exceed its expenditures, a budget deficit when its expenditures exceed its tax revenues, and a balanced budget when the two figures are equal.
<h3>How do trade deficits result from budget deficits?</h3>
A budget deficit causes interest rates to rise, which raises net capital inflows and currency depreciation, which lowers net exports.
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Answer:
A.
Jan 1 balance 72,350
Add year 1 purchases $22,100
Total $94,450
Deduct the closing balance $69,400
Difference = sold equipment at Net Book Value = $25,050
Add accumulated depreciation to date = $22,000
Cost of equipment sold = $47,050.
B.
Cash flow from investing activities.
Cash received from sale of equipment (the Net book value + Gain in sales) = $30,050
Cash invested in purchase of new equipment -$22,100
Net cash flow from investing activities $7,950
Answer:
Toni must report the whole fair market value as his income
Explanation:
According to the tax laws you must report the whole FMV as your income
D is the most suitable answer
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