higher debt crowds out investment in capital goods and thereby reduces output relative to what would otherwise occur
<h3>What is
debt ?</h3>
Debt is an obligation that forces one party, the debtor, to pay another party, the creditor, money or other agreed-upon value. Debt is a delayed payment or series of payments that differs from an immediate purchase.
Student loans, mortgages, and company loans are examples of "good" debt, which is defined as money due for things that can help develop wealth or boost income over time. "Bad" debt is defined as credit card or other consumer debt that does little to help your financial situation. These are overstatements.
Debt refers to the amount of money that must be repaid, whereas financing refers to the provision of funds for use in commercial activities.
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Legal.
Harry should have consulted with a small business attorney when creating the contract and agreeing to the terms. Now that there is threat of a lawsuit, Harry should consult an attorney to figure out how to proceed.
Answer:
Payable tax 9.154, equal to the tax deduction 9,154
Explanation:
Net earnings from self-employment is $135.000
Multiply earnings by 92.3%
= 135.000 * 0.9235
= 124.672,5
If the amount after multiplication is in excess of $118.500, in such case the excess of amount over 118.500 should be multiplied by 2.9%
= 124.672,5 > 118.500
The difference between both amounts is 179.
Add: to the above amount tax on social security portion and medicare portion 15.3%$ on 118.500 which is the ceiling limit.
118.500 * 15.3%
=18.130.5 + 179
=18309.5
Therefore, the tax is 18309.5
Deduction of 50% on the tax can be claimed
Therefore, deduction is 9.154.
Thus, the tax payer can be benefited from the self-assessment tax deduction.