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.
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Answer:
The correct answer is letter "C": conducting business in a way that protects the natural environment while making economic progress.
Explanation:
Sustainable development is the capacity an institution has to satisfy individuals' needs without damaging the environment neither harming the atmosphere. To reach this stage there must be an equilibrium between the <em>economy, society, </em>and <em>the environment.</em> Sustainable development is difficult to be obtained with high poverty rates, habitats destruction, or indiscriminately resources exploitation.
<span>Gender would not be an effective base for market segmentation in this example in which they do not constitute distinct identifiable segments, because the segments are not </span>differentiable. Differentiable segments are segments in which the<span> </span>segment<span> boundaries can be stated clearly. In this case this is not possible, because both men and women respond similarly to the same marketing mix.(there are no differences).</span>
Answer:
WACC is 12.8%
Explanation:
<em>The weighted average cost of capital (WAAC) is the average cost of all the various sources of long-term finance used by a business weighted according to the proportion which each source of finance bears to the the entire pool of fund.
</em>
To calculate the weighted average cost of capital, follow the steps below:
Step 1: Calculate cost of individual source of finance(this is already given)
Cost of Equity= 15%
After-tax cost of debt = (1- T) × before-tax cost of debt =12%
Step 2 : calculate the proportion or weight of the individual source of finance
. (This already given)
Equity = 25%
Debt= 75%
Step 3; Work out weighted average cost of capital (WACC)
WACC = ( 15%× 25%) + ( 12%× 75%)
= 12.75%
WACC is 12.8%
The total life policies that are needed for this agreement is: 6.
<h3>What is cross-purchase agreement?</h3>
A cross-purchase agreement can be defined as a process that enables a business partners to buy a decease shares of a business and this process often depend on a life insurance policy.
Hence, the total life policies that are needed for this agreement will be 6 total life policies.
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