Answer:
Passive activity
Explanation:
Passive activities are those kind of activities which involve the business or the trade activities in which the person does not participate materially. And when the person participate materially in the activity, the person is involved in the operations of the company on a continuous, substantial as well as regular basis.
So, in this case, the taxpayer does not participate materially in the activities of the business and the taxpayer is the partial owner, any loss which flows through to the taxpayer will subject to the passive activity rules of loss.
Answer:
Holding Period return is 6.25%
Explanation:
The return received on the asset in the period in which it is held is called holding period return. It included the interest / dividend received and change in the initial price and current price.
According to given data
Initial Price of stock = $48
Expected Value in coming year = $46
Expected Dividend = $5
Formula for Holding Period Return
HPR = [ Income + [ ( Expected value - Initial Value ) ] / initial value
HPR = [ Expected Dividend + [ ( Expected value - Initial Value ) ] / initial value
HPR = [ $5 + ( $46 - $48 ) ] / $48
HPR = [ $5 - $2 ] / $48
HPR = $3 / $48
HPR = 0.0625 = 6.25%
If the government increases expenditure without raising taxes, this will <span>cause the interest rate to increase, thereby, reducing private investment and crowding out the private sector and </span>cause a decrease in the domestic exchange rate which will increase exports and decrease imports. Expenditures is increasing the amount of money and money available to be spent. In this case, the government is increasing the amount of money that tis available to be spent but they aren't imposing taxes on consumers with the increase. <span>
</span>
Explanation:
Here Initial amount = $10,00,000
Nominal Interest Rate = 9.2%
inflation Rate = 5%
Real Interest Rate = 4%
in question it was asked to give in real then we will use the real discount rate to know annual spent amount
Present Value = PMT×PVIFA ( at 4% and 20 years)
Therefore, PMT = Present Value of Cash / PVIFA ( at 4% and 20 years)
= 1000000 / 13.5903
= $73581.75
Where, PMT = Annual Spent Amount
PVIFA = Present Value interest Factor Annuity
Answer:
b) increased by 2%.
Explanation:
If Eli has been granted a 6% raise in salary.
In addition, during the year, overall prices in the economy have increased by 4%. Given this information, Eli's real wage has increased by 2%.
The nominal rate of increase is 6% but the real rate of increase is gotten by the nominal rate minus the inflation rate
Therefore Real rate of wage increase for Eli = 6% - 4% = 2%
