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OverLord2011 [107]
2 years ago
7

Which statement describes the effect of taxes on a traditional 401(k) retirement account?

Business
2 answers:
kipiarov [429]2 years ago
6 0

Answer:

C. A traditional 401(k) is tax deferred because the income earned isn’t taxed until the money is withdrawn.

Explanation:

PLATO

Inga [223]2 years ago
3 0

Answer:

C.

A traditional 401(k) is tax deferred because the income earned isn't taxed until the money is withdrawn.

Explanation:

There are two types of 401 k plans: traditional 401k and Roth 401k plans. The difference is the way there are taxed.

The traditional 401k plan is an employer-sponsored retirement scheme.  The employer withholds the employee contributions and remits the funds to the employee's 401k savings account. The amount deducted as the employee contribution is not subject to taxation at that point. Contributions to 401k plans reduce the employee's taxable income.

The amounts saved in a 401k plan are invested and generate income. Employees are not expected to pay taxes on the income generated every financial period. All taxes are deferred until the time of withdrawal.

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When both producers and consumers experience a surplus, the market is demonstrating efficiency?
Tcecarenko [31]

If both consumers and producers are experiencing a surplus the market is efficient

4 0
3 years ago
Which of the following is an advantage of a sole​ proprietorship?
Y_Kistochka [10]
Some of the advantages of sole proprietorship
1. efficient decision making, by owner only
2. easy to set up, minimal cost, minimal fuss
3. low fixed cost (overhead), could be a home-office

I might have missed others, you could figure them out from the options
4 0
3 years ago
Purchasing power parity does not hold in the short to medium run because:____.
maria [59]

Answer:

some goods aren't internationally traded

Explanation:

Purchasing power parity is most popularly known as the PPP. It may be defined as the measure of the prices of the various countries which makes use of the price of some specific goods in order to compare the absolute purchasing capability or power for the countries' currencies.

It is used to measure and compare prices at different locations.

The purchasing power does not hold good in the short to the medium run as different countries produces different goods and as such all the goods are not internally traded all over the locations or countries.

8 0
2 years ago
Suppose the Federal Reserve wants to increase the money supply by $200. Again, you can assume that banks do not hold excess rese
LuckyWell [14K]

Answer:

The fed needs to purchase bonds worth $20 from the banks to increase money supply by $200.

Explanation:

The Federal Reserve wants to increase the money supply by $200.

The reserve requirement is 10%.

The fed can increase the money supply by purchasing bonds from commercial banks.  

The money supply will increase by money multiplier times worth of bonds.  

Increase in money supply = \frac{1}{RR}\ \times\ Worth\ of\ bonds\ purchased

$200 = \frac{1}{0.1}\ \times\ Worth\ of\ bonds

Worth of bonds = \frac{200}{10}

Worth of bonds = $20  

So the fed needs to purchase bonds worth $20 from the banks to increase money supply by $200.

7 0
3 years ago
New Jersey raises its minimum wage while neighboring Pennsylvania does not. Economists compared the labor market in both states
ollegr [7]

Answer:

Natural experiment

Explanation:

Natural experiment is the study of empirical, which comprise of the individuals who are exposed to the control as well as the conditions of the experimental , which are determined or evaluated by the nature or through other kinds of factors that are outside the person control.

The procedure of governing the exposures resemble the random experiment. This experiment are not controllable and are the observational studies. So, the event is naturally occurring, then it is an example of the natural experiment.

6 0
3 years ago
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