If Congress passed a tax increase at the request of the president to reduce the budget deficit, but the Fed held the money supply constant, then the two policies together would generally lead to lower income and a lower interest rate.
<h3>What is
budget deficit?</h3>
When ongoing expenses are higher than regular operating revenue, a budget deficit results. Budget deficits may result from specific unforeseen circumstances and initiatives. Tax increases and spending reductions are two ways that nations might deal with budget problems.
Inflation, or the ongoing rise in prices, is one of the main threats posed by a budget deficit. A budget deficit in the US may lead to the Federal Reserve releasing more money into the economy, which fuels inflation. Year after year, ongoing budget deficits may result in inflationary monetary policy.
The relationship between deficits and interest rates is more clearly demonstrated when the deficits are used to fund government spending than by tax reductions. If tax cut recipients save part of the money they receive from the tax cut, the impact of the tax cut on interest rates should be minimized.
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Answer: D
Explanation:
There are only two nations and two goods
Answer:
$40,000 increase in annual net operating income
Explanation:
If Talboe buys the the wheels then the annual net operating income of the company will be $40,000
Cost of purchasing wheels $0.80 per wheel * 200,000 wheels = $160,000
savings in fixed cost $25,000
Rental income from wheels $55,000
Net cost of buying the wheels $80,000
If company manufactures the wheels its total cost is $200,000
The net change in operating income is $200,000 - $160,000
Answer:
As the population ages, with proportionally more older people and fewer younger people, demand patterns shift and opportunities arise in new markets. That means some industries will suffer or need to undergo dramatic shifts to remain relevant.
Explanation: