Fiscal policy involves government changes to spending or taxation to affect the economy.
<h3>What is meant by fiscal policy?</h3>
This is the use of government tools such as taxes or expenditure in the stimulation of a given economy. The use of fiscal tools could be either for a contractionary government policy or it could be expansionary in nature.
Contractionary means the raise in taxes and the decrease in government spending. The expansionary policy is the opposite of this. Hence we have to say that Fiscal policy involves government changes to spending or taxation to affect the economy.
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Answer:
Carpenter will have to pay taxes for a recognized gain of $150,000
Explanation:
When you are calculating taxes, you must use the adjusted a¿basis of the buildings.
Paul is exchanging a $450,000 building + $75,000 in cash for a $375,000 office building.
Paul's realized loss = $525,000 - $375,000 = $150,000
therefore Carpenter's recognized gain = $150,000
<span>The phase of accounting that is concerned with providing information to managers for use within the organization.
</span><span>Production manager, VP of Business Planning, Controller</span>
Answer:
SO expected return on Mkt Portfolio Rm = 10.75%
Explanation:
market degree of risk aversion A = 3
Var = 0.0225 = SD^2
Rf = 4%
What is expected return on Mkt Portfolio ie Rm??
According to CAPM, Rm-Rf = A*SD^2
where SD is Std Dev (Recall SD^2 = Variance)
A is market degree of risk aversion
So we have Rm-4% = 3*0.0225
ie Rm = 4% + 3*0.0225 = 10.75%
SO expected return on Mkt Portfolio Rm = 10.75%
