Answer:
The correct answer is (B)
Explanation:
Tax is applied to decrease the budget deficit, as it helps to improve the government's revenue. Overall, a cut in tax rates has many benefits on the general economy, such as an increase in demand, and a decrease in inflation. Most economists believe that a cut in tax rates will positively affect the aggregate demand due to a decrease in overall prices of goods and services.
Answer:
c
Explanation:
Required reserves is the percentage of deposits required of banks to keep as reserves by the central bank
Required reserves = reserve requirement x deposits
0.2 x $100,000 = $20,000
Excess reserves is the difference between reserves and required reserves
Required reserves = 0.15 x 600 = 90
Excess reserves = 600 - 90 = 510
It is traditional economics
Decreasing their product mix.
If a company cannot meet their strategic goals for a product they may decide to stop the sale and production of that item all together to focus resources on better-performing goods.
Answer:
Latinmore made money on the exchange rate movement. It was an exchange rate gain of $369,566. The marginal tax impact was $147,826.
Explanation:
Since the standard practice in accounting is to reflect the current situation of the company, any change in the exchange rate that affects the assets of the company abroad must be recognized. The financial income of exchange gains are registered in the Income Statement and affects the base to pay income tax.
