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patriot [66]
3 years ago
5

Us federal income tax is progressive by law, but which best explains why is it sometimes regressive in practice?

Business
2 answers:
Solnce55 [7]3 years ago
3 0
I believe the answer is: High-income earners use tax laws to their advantage to reduce their tax rates

High income earners tend to possess financial knowledge or ability to allow experts who understand the full scope of taxation laws and how to recorded the transactions in a way that make it eligible for tax deduction. This makes a lot of high income earners manage to avoid paying taxes even if they manage to obtain a lot of profit.
NikAS [45]3 years ago
3 0
"High-income earners use tax laws to their advantage to reduce their tax rates" is what best explains why the US federal income tax is progressive by law, but it is s<span>ometimes regressive in practice. I hope that this is the answer that you were looking for and the answer has actually come to your great help.</span>
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Answer:

The Federal Reserve took an expansionary approach during the crisis. This was done by expanding the money supply and boosting liquidity. This can be seen in the Fed's actions of lending to banks, purchasing securities, and lowering the federal funds rate in order to lower overall interest rates. The Fed's goal was to increase consumer spending and overall liquidity within the system, and they pursued this by expanding the supply of liquid money.

Explanation:

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3 years ago
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Type the correct answer in the box. Spell all words correctly.
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Which measurements is the same length as 1 meter
vampirchik [111]

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A yard.

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3 years ago
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International flows of funds can affect the Fed's monetary policy. For example, suppose that interest rates are trending lower t
Elden [556K]

Answer:

International flows of funds can affect the Fed's monetary policy. For example, suppose that interest rates are trending lower than the Fed desires. If this downward pressure on U.S. interest rates may be offset by <u>outflows</u> of foreign funds, the Fed may not feel compelled to use a <u>tight </u>monetary policy.

Explanation:

A Tight Monetary Policy is when the central bank tightens policy or makes money tight by raising short-term interest rates through policy changes to the discount rate, also known as the federal funds rate. Boosting interest rates increases the cost of borrowing and effectively reduces its attractiveness.

Outflows of foreign funds or the flight of assets occurs when foreign and domestic investors sell off their holdings in a particular country because of perceived weakness in the nation's economy and the belief that better opportunities exist abroad.

The reasoning is as follows, the rate is down in the USA so holders of assets look for better rates abroad as a consequence  there is less money in the US domestic economy and automatically the rate tend to rise (remember that interest rate is the price of money). If there is less supply of something the price of that something will go up (ceteris paribus). The same thing will happen to the interest rate without the intervention of the FED.

7 0
4 years ago
Panda Cafe earned net income of $ 69 comma 000 after deducting depreciation of $ 3 comma 000 and all other expenses. Current ass
kompoz [17]

Answer:

Panda Cafe's cash provided by operating activities​ is 82.000

Explanation:

The indirect method involves the adjustment of net income with changes in balance sheet accounts to arrive at the amount of cash generated by operating activities.

It depends on the account if it is added or subtracted to net income. In this case ,  all of them are added to the net income.

Net income 69.000

Adjustment to reconcile the net income to cash  

+ Depreciation expense 3.000

+ Increase in current liabilities  8.000

+ Current assets decreased 2.000

 

Net cash 82.000

4 0
3 years ago
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