All categories

3 years ago

The government increases taxes. What might be a reason for this change in fiscal policy?

2 answers:

Crank3 years ago

8 0

A; a deficit due to improving nationwide public transportation. Surplus in this case means that we have left over money.

morpeh [17]3 years ago

7 0

Answer:

A deficit due to improving nationwide public transportation

Explanation:

Fiscal policy is the instrument by which the government collects taxes to use resources in areas that require public investment. When the government spends more than it collects, there is a deficit. To finance this deficit, one of the government's alternatives is to raise taxes. On the contrary, when the government spends less than it collects, there is a surplus. In this case, the government could lower taxes.

In the case narrated, the government raises taxes. Therefore, this is feasible to cover the public account deficit. Fiscal faith only refers to direct government spending in areas of public interest, such as transportation, education, health, welfare, and so on. The relationship between the government and the financial market is not considered in the fiscal deficit, it is separated into another specific account. Therefore, the only correct alternative is that the government has raised taxes to cover the fiscal deficit of transport infrastructure spending, which is a sector that requires direct government investment.

You might be interested in

Who in t.f would let biden win

harkovskaia [24]

Answer:

people who are stupid lol

Explanation:

7 0

3 years ago

Read 2 more answers

Multiple Choice Is an outflow of cash from the use of a plant asset. Is applied to land. Measures the decline in market value of

azamat

Answer:

Is the process of allocating to expense the cost of plant asset.

Explanation:

Depreciation is an expense indicating a decline in the value of the capital assets due to tear and wear, obsolescence, consumption, time span, etc. It's shown on the income statement debit side. It is a non-cash item which has no effect on the cash balance.

Moreover, it is to charged over the specified number of useful life so that proper amount of the depreciation should be recorded in the books of accounts

5 0

3 years ago

You are planning to save for retirement over the next 30 years. To do this, you will invest $750 per month in a stock account an

Nikolay [14]

Answer:

Ans. Assuming that the withdrawal period is 300 months (25 years), you can withdraw every month $15,547.96

Explanation:

Hi, first, we have to take to future value (30 years in the future) the invested capital (both the stock account and the bond account). From there, we will consider the sum of both future values as the present value of the annuity that you are about to receive for the next 25 years (300 months). But before we do all that, we need to convert the return rates (compounded monthly) into effective monthly rates, for that we just go ahead and divide each one by 12, as follows

r(Stock) = 0.105/12= 0.00875

r(Bond)= 0.061/12 = 0.00508

r(Combined Account)= 0.069/12=0.00575

Now we are ready, first, let´s find the future value of the stock account.

$FV(stock)=\frac{750((1+0.00875)^{360}-1) }{0.00875} =1,887,300.74$ }

Now, let´s find out how much will it be in 30 years, investing $325 per month, at the end of the month, at 0.508% effective monthly.

$FV(Bond)=\frac{325((1+0.00508)^{360}-1) }{0.00508} =332,526.95$

And then we add them up and we get:

$FV(stock)+FV(bond)=1,887,300.74+332,526.95=2,219,827.69$

Ok, now let´s find the annuity (monthly withdraw) taking into account that we are going to make 300 withdraws at a rate of 0.575% effective monthly,

$[tex]2,219,827.69=A(142.7729593)$

$\frac{2,219,827.69}{142.7729593} =A$

$A=15,547.96$ \frac{A((1+0.00575)^{300}-1) }{0.00575(1+0.00575)^{300} }[/tex]

Best of luck.

5 0

3 years ago

Catering Corp. reported free cash flows for 2008 of $8.14 million and investment in operating capital of $2.14 million. Catering

Neko [114]

Answer:

Catering's 2008 EBIT is $11.47 million

Explanation:

Operating cash flow = EBIT + Depreciation – Taxes

Also the same as EBIT = Operating cash flow - Depreciation + Taxes

When Operating cash flow = Free cash flows + Investment in operating capital

OCF = $8.14 million + $2.14 m illion

Operating cash flow = 10.28 million

EBIT = Operating cash flow - Depreciation + Taxes

EBIT = 10.28 million - 0.95 million + 2.1 4 million

EBIT = $11.47 million

Catering's 2008 EBIT is $11.47 million

6 0

3 years ago

The bank charged another company's check against our account. This would be included on the bank reconciliation as a(n)?

xxTIMURxx [149]

When bank charged another company's check against our account this would be included on the bank reconciliation as a addition to the balance per books.

A bank reconciliation statement summarizes banking and business activities and reconciles a company's bank accounts and its financial records. A bank reconciliation statement confirms that the payment has been processed and the cash collection has been credited to your bank account.

Withdraw an outstanding check. This will give you a reconciled bank balance. Then, use the cash balance at the end of the business to add up the interest earned and any outstanding bills. Deduct all bank charges, penalties and NSF checks.

Procedures for verifying the accuracy of both company bank statements and cash accounts. - Must be completed at the end of each month. A common cause of differences between the bank's ending balance and the cash book's ending balance.

Learn more about reconciliation at

brainly.com/question/15525383

#SPJ4

5 0

2 years ago