Net income = $125,000
Interest expense = $30,000
Tax expense = $40,000
Interest times hart corporation earned
for the year = ?
First add all the expenses and then
divided by interest expense to get interest times.
= ($125,000 + $30,000 + $40,000) /
$30,000
= $195,000 / $30,000
<span>= 6.5 </span>
Answer:
A: The supply of loanable funds curve
B: left
C: Increase
Explanation:
If the tax rate on interest earned on savings deposits rises to 25% then the <u><em>supply of loanable funds curve</em></u> will shift to the <u><em>left </em></u>causing the equilibrium interest rate to <u><em>slide upwards (or increase). </em></u>
The supply curve for loanable funds slopes upwards from left to right. This means that when interest rates are high, lenders are more willing to lend more funds to investors and businesses. The intersection of the demand and supply curves for loanable funds creates the equilibrium interest rate.
Cheers!
<span>Suggest careers for which the subject might be well suited.</span>
Answer:
<em>Suppose the economy is initially in equilibrium, when a decrease in</em><em> </em><u><em>Savings </em></u><em>decreases total leakages out of the economy. </em>
Savings are considered leakages in the economy because the represent money that is not spent but rather saved.
<em>Which of the following will occur as a result of this change?</em>
<em>GDP rises above planned spending.</em>
Savings reduces spending but as savings have reduced, there will be more spending which is unplanned and so this increase in unplanned spending will make GDP higher than planned spending.
Injections and leakages are equal to each other <u>when real GDP is equal to aggregate expenditure. </u>
Injections and leakages are equal when the output (GDP) and the Aggregate expenditure are the same.
Answer:
$171,941
Explanation:
Cash out = $921,941. 2. Interest earned by the investment = $171,941.