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Nookie1986 [14]
3 years ago
7

What would happen in the market for loanable funds if the government were to increase the tax on interest income?

Business
1 answer:
nalin [4]3 years ago
5 0

Answer:

Interest rates would rise.

Explanation:

There would be a decrease in the amount of loanable funds borrowed.

if the government were to increase the tax on interest income, a reduction in the amount of funds borrowed would happen because the cost of borrowing would then become higher and people would have to pay more than they would have paid for every amount borrowed

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Black mail just dont fire them either blackmail them or make them sign a contract
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3 years ago
Farmers Pantry Products Inc. and Market Grocers LLC dispute a term in their contract. If Farmers Pantry and Market Grocers have
e-lub [12.9K]

Answer: The process is not adversarial

Explanation:

Mediation' refers to the voluntary process that is used for resolving disputes whereby there's a neutral third party whom helps in facilitating dialogue between the conflicting parties and then helps them in identifying the issue and tech a settlement.

Based on the question, since both parties have a long-standing business relationship that they would like to continue, then they may prefer to settle their dispute through mediation because the process is not adversarial. An adversarial system typically involves going to the court.

7 0
3 years ago
Which of the statement(s) is correct? i. Corporations rarely pay tax on the interest income. ii. Higher tax bracket people tend
Doss [256]

Answer:

E. All the statements are correct

Explanation:

i. Corporations rarely pay tax on the interest income.

This statement is correct. Some companies do not even pay any income taxes.

ii. Higher tax bracket people tend to buy municipal bond because it is federal tax exempt.

Correct, people who have high incomes, and are subject to a high federal income tax rate often buy municipal bonds because these bonds are exempt from federal income tax.

iii. Short term capital gain and long-term capital gain are treated differently for individuals.

Correct. Short-term capital gains are those obtained from the sale of property that was owned for less than one year. This gains are often treated with the highest tax rate.

Long-term capital gains are those obtained from the sale of property that was owned for more than one year, and are treated with more favorable tax rates.

iv. The corporate tax rates in the U.S. is one of the lowest among the developed nations.

This statement is correct. The corporate tax rate in the U.S. is a nominal 21% (the effective rate can be as low as 0% for some companies). This is one of the lowest rates among developed nations, whose rates hover around 25 to 30% on average.

5 0
3 years ago
Simpson Company applies overhead on the basis of 200% of direct labor cost. Job No. 305 is charged with $180,000 of direct mater
sasho [114]

Answer:

$480,000

Explanation:

The computation of the total manufacturing costs for Job No. 305 is shown below:

= Direct material cost + direct labor cost + manufacturing overhead cost

where,

Direct material cost = $180,000

Direct labor cost is

= $200,000 ÷ 200% × 100%

= $100,000

And, the manufacturing overhead cost is $200,000

So, the total manufacturing overhead is

= $180,000 + $100,000 + $200,000

= $480,000

6 0
4 years ago
Cyclical unemployment is
Andre45 [30]
Cyclical unemployment is a factor of overall unemployment that relates to the cyclical trends in growth and production that occur within the business cycle.


5 0
3 years ago
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