Its B, Professional and business services. I just took the test.
Two hundred or higher (200+)
If Congress passed a tax increase at the request of the president to reduce the budget deficit, but the Fed held the money supply constant, then the two policies together would generally lead to lower income and a lower interest rate.
<h3>What is
budget deficit?</h3>
When ongoing expenses are higher than regular operating revenue, a budget deficit results. Budget deficits may result from specific unforeseen circumstances and initiatives. Tax increases and spending reductions are two ways that nations might deal with budget problems.
Inflation, or the ongoing rise in prices, is one of the main threats posed by a budget deficit. A budget deficit in the US may lead to the Federal Reserve releasing more money into the economy, which fuels inflation. Year after year, ongoing budget deficits may result in inflationary monetary policy.
The relationship between deficits and interest rates is more clearly demonstrated when the deficits are used to fund government spending than by tax reductions. If tax cut recipients save part of the money they receive from the tax cut, the impact of the tax cut on interest rates should be minimized.
To know more about budget deficits refer to: brainly.com/question/14181631
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Answer:
The maximum amount that the lender will be willing to provide to the borrower is $9,006.
Explanation:
Fixed payment for a specified period is know as the annuity. We will use the formula of present value of present value of annuity payment.
APV = C x [ ( 1 - ( 1 + i )^-n ) / i ]
C = Monthly payment = $800
Interest rate =i 8% = 0.08
n = number of years = 30 years
APV = $800 x [ ( 1 - ( 1 + 0.08 )^-30)/0.08 ]
APV = $800 x 11.2578
APV = $9,006
So, The maximum amount that the lender will be willing to provide to the borrower is $9,006.
Answer:
Net Present Value: 1,661,452,09
Explanation:
The net present value is the presetn value of the revenues less the cost from the company:
revenue: 435,000
interest expense:
250,000 x .073 = <u> (18,250) </u>
net income: 416,750
<u>after tax:</u> 416,750 x (1 - 21%) = 329,232.5
<u>present value</u> of the project (per perpetuity)
329,252.5 / 0.167 = 1,971,452.09
less the cash cost: (310,000)
Net Present Value: 1,661,452,09