Answer: $30 000 loss is deductible, $20 000 is suspended
Explanation:
Passive losses are only deducted from passive income. deduction is limited to $500 000 for jointly married couples and $250 000 single tax payers.
Passive income is $30 000, therefore $ 30 000 out of the $50 000 loss is deductible, the suspended loss is $20 000
Answer:
a leftward shift of the demand curve for CDs.
Explanation:
Most economists use the aggregate demand and aggregate supply model primarily to analyze short-run fluctuations in the economy.
This simply means that, whatever makes the factors of production such as, land, labor, entrepreneurship, capital, or efficiency to either go up or down would certainly result in fluctuations in the economy of a particular country.
Aggregate supply (AS) refers to the total quantity of output (goods and services) that firms are willing to produce and sell at a given price in an economy at a particular period of time.
Aggregate demand (AD) can be defined as the total quantity of output (final goods and services) that is demanded by consumers at all possible price levels in an economy at a particular time.
On a standard Aggregate demand (AD)-Aggregate supply (AS) curve, the y axis denotes the Price (P) of goods and services while the x axis typically denotes the Output (Q) of final goods and services.
In the short-run, a rightward shift in the aggregate supply (AS) curve causes output to increase and result in a price fall (lower price) while a rightward shift in the aggregate demand (AD) curve also cause output to increase and rise in prices.
In this scenario, consumers have been buying fewer CDs as downloadable music has become easier to purchase and use. We would represent this as a leftward shift of the demand curve for CDs.
Answer:
B. a discount to par value.
Explanation:
As we know that
If Face value > Price of Bond, Then the bond will be priced at discount and Coupon rate < Required rate of return.
If Face value < Price of Bond, Then the bond will be priced at Premium and Coupon rate > Required rate of return.
The price of the bond is determined by calculating the present value of future cash flows associated with the bonds using required rate of return. If the required rate of return is higher than the coupon value the present value of the cash flows will be lower, so ultimately the price of the bond will also be lower from the face value which will be a discounted price.
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Answer:
d. sells Treasury bonds. The larger the reserve requirement, the larger the decrease will be.
Explanation:
If the Fed targets to decrease the money supply, it uses contractionary policies. These are policies that make it hard for banks to loan out money to firms and households. By selling treasury bonds to banks, the Fed reduces the money available to the banks to loan out. Banks pay for the treasury bonds using customer deposits, thereby draining the money available to be issued out as loans.
Increasing the size of the reserve requirement reduces the percentage of deposits available to be loaned out. Reserves are a percentage of customers deposits that the Fed requires banks to maintain in their custody at all times. Reserves cannot be issued out as loans. The larger the reserve requirements, the lesser the proportion of funds are available for credit purposes.