Answer:
<em>The question is incomplete, complete question is as follows:</em>
Individual Retirement Accounts (IRAs) allow people to shelter some of their income from taxation. Suppose the maximum annual contribution to such accounts is $5,000 per person. Now suppose there is a decrease in the maximum contribution, from $5,000 to $3,000 per year.
Shift the appropriate curve on the graph to reflect this change.
This change in the tax treatment of interest income from saving causes the equilibrium interest rate in the market for loanable funds to and the level of investment spending to.
Explanation:
<em>To decrease.</em>
Saving is the basis of the loanable finance supply.
<em>Decreasing the saving rates which families may shelter from income tax would deter saving on each interest rate, contributing to a change in the supply of loanable funds to the left. </em>
The initial interest rate is due to a shortage of loanable funds. The lenders will also be able to increase the interest rate which they charge for loans with more inclined borrowers than lenders.
Whilst the interest rates increase, the quantity required for loanable funds is declining. The equilibrium interest rate is increasing, and the equilibrium amount of borrowed and invested loanable funds is decreasing.
The best support against a 0% inflation target given by the economic literature is c. A 0% inflation target could lead to deflation.
<h3>Why is a 0% inflation target risky?</h3>
If 0% inflation is targeted, the policy might be so effective that inflation becomes negative and deflation happens.
When deflation happens, the economy will experience hardships with lower production levels that will impact other sectors of the economy.
Options for this question include:
a. It is undisputed that too little inflation interferes with the downward adjustment of real wages.
b. Moderate to high inflation is popular among consumers.
c. A 0% inflation target could lead to deflation
Find out more on deflation at brainly.com/question/13562161.
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Answer:
A home mortgage company creates a sales promotion with incentives for potential home buyers to take advantage of a particularly favourable interest rate.
Explanation:
Companies usually give numerous promotions to their valuable customers to increase the overall sales revenue. In the above scenario, if a home mortgage company creates a sales promotion which attracts customers to buy their product and take advantage of the favourable interest rate is an example of companies focusing on macroeconomic factors. Macroeconomic forces are important for any company to improve profits.
Answer:
unique prroducts
Explanation:
A product is a commodity when all units of production are identical, regardless of who produces them. However, to be a differentiated product, a company's product is different than those of its competitors. On the continuum between commodities and differentiated products are many degrees and combinations of the two.
The answer to the blank space is a contrast effect. A contrast effect is defined as a psychological bias where individuals are prone to evaluating that a stimulus is more positive because a similar stimulus was previously perceived as negative.
This is what is going on with Tom; despite having been presented information by Sam regarding how low taxes in general creates higher tax revenue, Tom still believes that taxing the rich would generate greater tax revenue to reduce the effect of recession.
