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amm1812
3 years ago
15

Congress would like to increase tax revenues by 11.5 percent. assume that the average taxpayer in the united states earns $62,00

0 and pays an average tax rate of 10 percent.
a. if the income effect is in effect for all taxpayers, what average tax rate will result in a 11.5 percent increase in tax revenues?
Business
1 answer:
cricket20 [7]3 years ago
8 0
<span>An increase of 11.5 percent is the same as multiplying by 1.115. Since the current rate is 10 percent, an 11.5 percent increase would be:
10 percent x 1.115 = 11.15 percent.</span>
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Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, eight million dollars on
Arada [10]

Answer: It has 1 milion dollars in required reserves

Explanation:

Tot. Res = Vault cash + Deposit with Federal Reserve

Tot. Res = 2 million dollars + 8 million dollars = 10 million dollars

Total reserves are the sum of excess reserves and required reserves .

Tot. Res. = Exce. Res. + Req. Res.

10 million dollars = 9 million dollars = Req. Res.

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4 0
3 years ago
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coldgirl [10]

Answer

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Step-by-step explanation:

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8 0
3 years ago
with this type of externality, in the absence of government intervention, the market equilibrium quantity produced will be than
ikadub [295]

The type of externality where market equilibrium quantity produced will be more than socially optimal quantity in absence of governemtn intervention is Negative externality.

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A very good example of commonly cited Negative Externalities are air pollution and noise pollution which was caused during production an affects unrelated third party.

If there is presence of government intervention in the production, then, the production of goods or service will be halted.

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<em>brainly.com/question/13901028</em>

7 0
2 years ago
Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $9.50; direct
mrs_skeptik [129]

Answer:

$7.50 per unit

Explanation:

Cost of buying from outside supplier = $33 per unit.

Relevant cost of making such component in-house = Direct materials+ Direct labor+ Variable overhead

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Net incremental cost of buying the component = Cost of buying from outside supplier- Relevant cost of making such component in-house

= $33.00 per unit - $25.50 per unit

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4 0
2 years ago
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timurjin [86]

Answer:

Explained below

Explanation:

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2) From answer 1 above, since there is an increase in consumption as well as investment, this will in turn also lead to an increase in the aggregate demand of the economy. Whereas, we are told that the oil market is calm and therefore we can say it does not have an effect on the supply curve.

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8 0
2 years ago
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