Answer: D. increases in government purchases.
Explanation:
Crowding out may occur simply due to expansionary fiscal policy that is, a situation wherby the government wants to increase the money in circulation and also increase its expenditure. This can lead to the government borrowing funds.
Crowding out may occur when fiscal policy involves increases in government purchases. This borrowing in turn, affects the money that will be available to the private investors as there'll be lesser funds for them.
Answer:
<em>The Constitution contains the most important rules of our political system. It protects the rights of the people inside the country, and it explains their obligations. </em>
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Answer:
The term demand loan refers to a loan for which the entire balance must be paid immediately at the lender's request.
Answer: D
Explanation:
A demand loan lets the lender shorten the notice period for recalling the loan, thereby using it as a borrowing instrument. Upon immediate notification, the borrower has to repay the entire loan amount along with any interest associated with it. By means of this arrangement, the borrower is enabled towards loan repayment at any time sans any early penalty of repayment. To illustrate, overdraft arrangement is variable from the normal lending approach, having maturity date already determined along with the payable schedule of payments.
Answer:
option (d) $1.40 taxable income rather than $1.00 tax-exempt income
Explanation:
The taxpayer would prefer option (d) $1.40 taxable income rather than $1.00 tax-exempt income
The above statement will be chosen because in this case the after tax income will be greater than the tax exempt according to the condition given in the question
Given:
Marginal Tax bracket = 25%
thus,
Taxable income = $1.40
Tax = $1.40 × 0.25 = $0.35
Therefore,
The net income = Taxable income - Tax = $1.40 - $0.35 = $1.05
and,
$1.05 > $1.00
