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lana66690 [7]
3 years ago
6

When a Democrat is elected as president, business leaders expect that the corporate profits tax will be increased. Most likely,

this will cause business firms, ceteris paribus, to A) plan to increase investment in the future to compensate for the higher tax rate. B) decrease investment because they would expect lower benefits from investment. C) not change their investment plans because higher corporate profit taxes will not change the demand for their product. D) increase investment because the higher corporate profits tax will increase the return on any investment.
Business
1 answer:
12345 [234]3 years ago
5 0

Answer:

B) decrease investment because they would expect lower benefits from investment.

Explanation:

The Democratic party refers to one of the major political parties in the United States of America. It was founded on the 8th of January, 1828 and has its headquarter in Washington DC, USA.

Also, a democratic nominee is an individual who is the flag bearer or official candidate of the democratic party by virtue of being selected by the delegates of the party. In order to become the winner of a democratic election, the nominee are expected to go around to campaign for votes from the electorates.

When a Democrat is elected as president, business leaders expect that the corporate profits tax will be increased. Most likely, this will cause business firms, ceteris paribus (all things being equal), to decrease investment because they would expect lower benefits from investment.

This ultimately implies that, business owners would be discouraged in investing in businesses due to an increase in the corporate tax.

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Bill Darby started Darby Company on January 1, Year 1. The company experienced the following events during its first year of ope
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Answer:

Darby Company

The amount of interest payable at December 31, Year 1 is:

$76.67

Explanation:

a) Data and Calculations:

Cash Revenue = $1,300

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b) The amount of interest payable on the loan totals $230 ($2,300 * 10%).  However for Year 1, the interest payable is reduced to 4 months (September 1 to December 31, Year 1), amounting to $76.67.  This implies that the remaining interest ($153.33) will be payable in the period between January 1 and August 31 in Year 2.  In accordance with the accrual and matching principles of generally accepted accounting principles, interest expense must be accrued to the period when the expense is incurred and matched to the revenue it has generated.

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Last year, you earned a rate of return of 11.29 percent on your bond investments. During that time, the inflation rate was 4.6 p
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Answer:

the real rate of interest of  6.39 %

Explanation:

given,

rate of return on your bond  = 11.29 %

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rate of return = (\dfrac{1+ return\ rate}{1 + inflation }-1)\times 100

rate of return = (\dfrac{1+ 0.1129 }{1 + 0.046 }-1)\times 100

rate of return = (\dfrac{1+ 0.1129 }{1 + 0.046 }-1)\times 100

rate of return = (\dfrac{1.1129}{1.046 }-1)\times 100

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