If a fiscal policy change is going to exert a stabilizing impact on the economy, policy must add stimulus to demand during a slowdown but it should restraint the demand during an economic boom.
Fiscal policy is the policy in which the government spending and taxation is used to influence the economy.
Governments generally use fiscal policy to promote strong as well as sustainable growth in the economy and reduce the poverty too.
The role and objectives of fiscal policy which gained importance during the recent global economic crisis is when the different governments stepped in to support financial systems.
Governments starts the growth, and also mitigate the impact of the crisis on vulnerable groups through the use of fiscal policy.
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"John is 17 years old and he earned $3,500 in a summer job. His grandparents just ..."John can contribute $3,500 to an IRA. This is further explained below.
<h3>What is IRA?</h3>
Generally, For those looking to save and invest for their retirement, an individual retirement account (IRA) is a kind of savings account that offers favorable tax treatment.
In conclusion, "John, who is just 17, worked all summer and saved $3,500. Just recently, his grandparents..." John has an annual IRA contribution limit of $3,500.
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Answer:
there is an increase in taxes of $52,192
Explanation:
The computation of the net payment or saving is shown below:
Given that
Book value = $450,000
Sale value = $636,400
since the sales value is more than the book value so here the capital profit is there
Therefore capital profit would be
= $636,400 - $450,000
= $186,400
Now tax would be
= $186,400 × 28%
= $52,192
So there is an increase in taxes of $52,192
