Answer:
b. She receives $10,000
Explanation:
Taxes owed = (1/4 of income) - $15,000.
Taxes owed = (1/4 x 20,000) - $15,000.
= 5,000 - 15,000 => -10,000
Hence, she receives $10,000 from the government.
A negative income tax is a system where people earning below a certain amount receive supplemental pay from the government instead of paying taxes to the government.
Answer:
Total Check-able deposits to increase by $333.5 billion
Explanation:
If the bank reserves increase by $50 billion, the total check-able deposits will increase by 50 * the credit multiplier.
Credit multiplier is the measure by which an increase in total money supply can be measured relative to an increase in banks' excess reserves.
Credit Multiplier = 1 / reserve ratio
Credit Multiplier = 1 / 0.15 = 6.67
So an increase in excess reserves of 50 billion will have a net effect of 50 * 6.67 = $333.5 billion. This will be the net increase in total check-able deposits or the money supply.
Hope that helps.
Answer:
$395833
Explanation:
Calculation to determine How much money is the firm considering borrowing if the interest rate is 8 percent
Amount to borrowed=(95000 / 75000) = [95000 – (X * 0.08)] / 50000
Amount to borrowed=1.26 = [95000 – (X * 0.08)] / 50000
Amount to borrowed=63333.33 = 95000 – (X * 0.08)
Amount to borrowed=31666.65 = X * 0.08
Amount to borrowed=X=31666.65/0.08
Amount to borrowed=$395833.33
Therefore How much money is the firm considering borrowing if the interest rate is 8 percent will be $395833
