Answer:
Therefore, Increases in the tax rate decrease the government purchases multiplier
Explanation:
Given that
MPC = 0.8
Tax rate t = 0.25
tax rate is increases by 35%
Government purchases multiplier
= 1 ÷ 1 - MPC × (1 - t). Here
So, GPM = 1 ÷ 1 - 0.8 × (1 - 0.25) = 2.5
Government purchases multiplier
= 1 ÷ 1 - MPC × (1 - t)
MPC = 0.8
tax rate t = 0.35
GPM = 1 ÷ 1 - 0.8 × (1 - 0.35)
= 2.08333
= 2.083
Therefore, Increases in the tax rate decrease the government purchases multiplier.
Answer: True
Explanation:
An exculpatory clause is a form of contract provision which relieves one party of liability when damages are caused while executing the contract. The party which ssues the exculpatory clause is the one that is seeking to be relieved of any potential liability incurred.
There has already been a notice that "the garage is not responsible for any item stolen from the car". Roger parking his car at the garage is at his own risk as the garage owners won't be responsible.
Answer:
$2,150
Explanation:
When taking money out, it is a compulsory requirement to pay an early withdrawal or distribution penalty, before the age of 59½ years.
In the case of Ellen, she's not up to 59½ years old, she's still 55.
The age 55 exception is an exception that allows people not to pay 10% early distribution penalty for retirement plan distributions before they get to 59½ years old.
Taking IRA from an account (401(k), in this case) into another account (an IRA) by someone like Ellen who is not up to 59½ years old is not considered a distribution, so she is totally free to change financial institutions at any time without worrying about a penalty tax.
So, $2,150 of her early distribution is subjected to early distribution penalty but she won't be penalised
