When the government cuts taxes to keep the economy's cyclically adjusted budget in balance when the economy is expanding. The government is engaging in "neutral fiscal policy".
<h3>What is neutral fiscal policy?</h3>
When a government choice to tax, spend, or borrow has, or is meant to have, no overall impact on the economy, the action is considered fiscally neutral. Changes in policy can be viewed as neutral in terms of either their macroeconomic, microeconomics, or both effects.
fiscal neutrality occurs when taxes and government spending have no net effect-
- on the overall budget,
- total demand,
- economic activity.
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Answer:
B) adverse impact
Explanation:
Adverse impact refers to those practices that seems to be neutral for all the people but have a discriminatory effect on a certain group. It takes place in activities like hiring, promotion, training etc. of employees.
Answer:
They must deposit $5,113,636.36.
Explanation:
Giving the following information:
Cash flow= $225,000
Interest rate= 4.4 percent
To determine the amount to be deposited today, we need to use the perpetual annuity formula:
PV= Cf/i
Cf= cash flow
PV= 225,000/0.044
PV= $5,113,636.36
They must deposit $5,113,636.36.
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Answer:
$2.07
Explanation:
the complete answer details is found in the attachment below
