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Lana71 [14]
3 years ago
10

Scenario 1: Suppose savers either buy bonds or make deposits in savings accounts at banks. Initially, the interest income earned

on bonds or deposits is taxed at a rate of 20%. Now suppose there is a decrease in the tax rate on interest income, from 20% to 15%.
This change in the tax treatment of saving causes the equilibrium interest rate in the market for loanable funds to ____ and the level of investment spending to ____ .
Business
1 answer:
Trava [24]3 years ago
3 0

Answer:

This change in the tax treatment of saving causes the equilibrium interest rate in the market for loanable funds to <u>DECREASE</u> and the level of investment spending to <u>INCREASE</u>.

Explanation:

Since the tax rates on savings decreased, more money will be available for saving which will increase the supply of loanable funds. When the supply of any good or services increases, its price decreases. In this case, the price of money is the interest rate.

Since the interest rate decreases, the total quantity demanded for loans will increase, increasing the level of investment spending.

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A farmer sells a bushel of corn to the supermarket for $12. The supermarket then sells the corn to customers for $25. What is th
allsm [11]

Answer:

$ 25

Explanation:

As per the description, the exact amount that is being contributed from the corn bushel to the Gross Domestic Product would be $ 25. The price at which the farmer sold it to the supermarket would not be included in the GDP because it would be considered as an intermediary good because the good purchased for the resale purpose is not included in GDP as it leads to double-counting. Thus, <u>only the price of the final good i.e. $ 25 would be included in GDP as it will now be used for final consumption by the customers</u>.

6 0
3 years ago
In the weekly computer run to prepare payroll checks, a check was printed for an employee who had been terminated the previous w
Gre4nikov [31]
<h2>A control total for hours worked, prepared from time cards collected by the timekeeping department.</h2>

Explanation:

An employee should get salary only based on the number days / number hours worked for the organization. So the time card will help the organization to solve the problem.

So the time card should be collected and then only the salary needs to be calculated. The salary calculation should take number of leaves (paid / unpaid), permissions and On-duty in to account so that the expected outcome can be achieved.

8 0
3 years ago
When a firm doubles its inputs and finds that its output has more than doubled, this is known as: select one:
jek_recluse [69]
<span>When a firm doubles its inputs and finds that its output has more than doubled, this is known as economies of scale. When a business has reached economies of scale, that means there is an equal amount saved in costs by increasing the production amount. The more you produce the lower the cost is to produce those items and the more amounts of items you have to sell. 

</span>
7 0
3 years ago
The Carnegie Foundation issued a report recommending that middle schools Multiple Choice become smaller, become more personal, a
worty [1.4K]

Answer:

D. Smaller "communities" or "houses" should be developed to lessen the impersonal nature of large middle schools.

Explanation:

  • The carnage foundation is a US-based education policy and research center that is committed to teaching and developing a network of ideas, individuals, and advanced teaching institutions.
4 0
2 years ago
Which of the following is an example of structural unemployment? A. Dora lost her job when the textile mill closed. She does not
yanalaym [24]

Answer:

The correct answer is option A.

Explanation:

Structural unemployment is the type of unemployment that arises because of mismatch in skills that the workers possess and the skills that the employers want.  

In the given example, Dora is unemployed because she does not have the skills required to work in industries other than a textile mill. This is an example of structural unemployment.  

Marsha's case is an example of cyclical unemployment as it caused due to recession.  

Alan and Jim's cases are examples of frictional unemployment. Both of them remained unemployed for a short time when moving from one job to another.

4 0
3 years ago
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