comsider the next tax rate, denoted by t. which of the following correctly defines the net...
Homework Answers
In finance, there are two key terms, such as, "gross" and "net" which we use frequently. In general, 'Net' refers to the amount/ value found after expenses have been accounted for, while 'gross' refers to the amount before such expenses or deductions are considered.
Thus, Net tax refers to the taxes paid to the government less transfer payments. Hence, the answer here is (A), that is, total tax revenue minus transfer payments.
Transfer payments are nothing but payments paid for or received for which no transfer of gods or services are being made, such as social security measures, subsidies etc.
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comsider the next tax rate, denoted by t. which of the
following correctly defines the net...
Macroecomics multiple choice a) Other things constant, if the government cuts the net tax rate, lowering NT from NT = t...
Macroecomics multiple
choice
a) Other things constant, if the government cuts the net tax rate, lowering NT from NT = tọY to NT = t,Y we would expect: an upward shift of the aggregate expenditure curve an increase in the slope the aggregate expenditure curve. a movement down and along the aggregate expenditure curve. O a decrease in the slope of the aggregate expenditure curve b) In an open economy with imports described by the import function: IM 0.25Y and...
We have two goods A and B and the government plans to collect X by imposing tax rate t on these two goods. The marginal...
We have two goods A and B and the government plans to collect X by imposing tax rate t on these two goods. The marginal costs of both goods are 10. The demand curves of two goods are pA = 20 - QA pB = 50 - 2QB (a) Given tax rate tA and tB, calculate the tax revenues of two goods. (b) Given tax rate tA and tB, calculate the excess burdens of tax of two goods. (c) Calculate...
1.) Which of the following is an example of a timing problem with enacting fiscal policy?...
1.) Which of the following is an example of a timing problem with enacting fiscal policy? Since most people increasing their savings when their income rises, the tax multiplier is likely to be smaller than originally thought. Once the government increases spending, it is difficult to decrease spending in the future Democrats want to pass a spending bill, but Republicans do not. They argue for months in the House of Representatives prior to a modified bill being passed. the Federal...
1. What is Effective Tax Rate? A. the tax rate that applies to the next additional...
1. What is Effective Tax Rate? A. the tax rate that applies to the next additional increment of a taxpayer’s taxable income. B. the taxpayer’s average rate of taxation on each dollar of total income, both taxable and nontaxable C. the taxpayer’s average level of taxation on each dollar of taxable income D. the tax rate that applies only to corporations 2. David wants to support his tax deduction on his tax return using a primary tax authority source....
Suppose the government raises its revenue by a net tax of 35 percent on income, t...
Suppose the government raises its revenue by a net tax of 35 percent on income, t = 0.35. The marginal propensity to consume out of disposable income is 0.85 and the marginal propensity to import is 0.25. Note: Keep as much precision as possible during your calculations. Your final answer should be accurate to at least two decimal places. a) What is the slope of the AE function? What is the size of the multiplier? Slope of AE = 0...
29 Suppose we have the following information conceming the federal government's finances Multiplier: 1.5 Tax Rate:...
29 Suppose we have the following information conceming the federal government's finances Multiplier: 1.5 Tax Rate: 15 % Increase in spending: $200 Billion Total Deficit in the previous year: $1 Trillion Why is the current deficit brought on by the increase in government spending less than the increase in spending by the government? The fiscal stimulus decreased the overall income in the economy causing tax revenues to increase O The Ricardian Equivalence theorem caused individuals to increase their spending, which...
5. Automatic adjustments to the government budget The following table provides some information on government expenditures (G) and tax revenues (T) at different levels of real GDP in a hypothetic...
5. Automatic adjustments to the government budget The following table provides some information on government expenditures (G) and tax revenues (T) at different levels of real GDP in a hypothetical economy. Throughout this problem you should assume that government transfers (TR) are zero. Real GDP (Billions of dollars) 460 Government Expenditures (G) (Billions of dollars) 72 72 72 Tax Revenues (T) (Billions of dollars) 70 72 74 540 Use the blue line (circle symbols) to plot the government expenditures schedule...
Use the marginal income tax rates shown here to calculate the average tax rate on an...
Use the marginal income tax rates shown here to calculate the
average tax rate on an income of $100,000.
Taxable Income
Tax rate
$0–$8,700
10%
$8,700–$35,350
15%
$35,350–$85,650
25%
$85,650–$178,650
28%
$178,650–$388,350
33%
Over $388,350
35%
Average tax rate on $100,000 of income is ____________.
21.46%
24.27%
28.00%
10.5 points
QUESTION 2
Use the marginal income tax rates shown here to calculate the
average tax rate on an income of $200,000.
Taxable Income
Tax rate
$0–$8,700
10%
$8,700–$35,350
15%...
A firm's income statement included the following data. The firm's average tax rate was 20% $...
A firm's income statement included the following data. The firm's average tax rate was 20% $ 9,400 Cost of goods sold Income taxes paid Administrative expenses Interest expense Depreciation 3,400 4,400 2,400 2,400 a. What was the firm's net income? Net income $D b. What must have been the firm's revenues? Revenues $C c. What was EBIT? EBIT $N Candy Canes, Inc., spends $262,000 to buy sugar and peppermint in April. It produces its candy and sells it to distributors...
QUESTION 1 Price level AS P1 P2 AD1 AD2 Y2 Y1 Real national output Which of...
QUESTION 1 Price level AS P1 P2 AD1 AD2 Y2 Y1 Real national output Which of the following would cause the shift in the AD curve (from ADto AD2) shown in the diagram above? A. The government increases interest rates B. The rate if income tax is reduced CA depreciation of the US dollar An improvement in technology QUESTION 2 Which combination of fiscal policies would be the most expansionary? A. an increase in government spending and an increase in...
Macroecomics multiple
choice
a) Other things constant, if the government cuts the net tax rate, lowering NT from NT = tọY to NT = t,Y we would expect: an upward shift of the aggregate expenditure curve an increase in the slope the aggregate expenditure curve. a movement down and along the aggregate expenditure curve. O a decrease in the slope of the aggregate expenditure curve b) In an open economy with imports described by the import function: IM 0.25Y and...
Suppose the government raises its revenue by a net tax of 35 percent on income, t = 0.35. The marginal propensity to consume out of disposable income is 0.85 and the marginal propensity to import is 0.25. Note: Keep as much precision as possible during your calculations. Your final answer should be accurate to at least two decimal places. a) What is the slope of the AE function? What is the size of the multiplier? Slope of AE = 0...
29 Suppose we have the following information conceming the federal government's finances Multiplier: 1.5 Tax Rate: 15 % Increase in spending: $200 Billion Total Deficit in the previous year: $1 Trillion Why is the current deficit brought on by the increase in government spending less than the increase in spending by the government? The fiscal stimulus decreased the overall income in the economy causing tax revenues to increase O The Ricardian Equivalence theorem caused individuals to increase their spending, which...
5. Automatic adjustments to the government budget The following table provides some information on government expenditures (G) and tax revenues (T) at different levels of real GDP in a hypothetical economy. Throughout this problem you should assume that government transfers (TR) are zero. Real GDP (Billions of dollars) 460 Government Expenditures (G) (Billions of dollars) 72 72 72 Tax Revenues (T) (Billions of dollars) 70 72 74 540 Use the blue line (circle symbols) to plot the government expenditures schedule...
Use the marginal income tax rates shown here to calculate the
average tax rate on an income of $100,000.
Taxable Income
Tax rate
$0–$8,700
10%
$8,700–$35,350
15%
$35,350–$85,650
25%
$85,650–$178,650
28%
$178,650–$388,350
33%
Over $388,350
35%
Average tax rate on $100,000 of income is ____________.
21.46%
24.27%
28.00%
10.5 points
QUESTION 2
Use the marginal income tax rates shown here to calculate the
average tax rate on an income of $200,000.
Taxable Income
Tax rate
$0–$8,700
10%
$8,700–$35,350
15%...
A firm's income statement included the following data. The firm's average tax rate was 20% $ 9,400 Cost of goods sold Income taxes paid Administrative expenses Interest expense Depreciation 3,400 4,400 2,400 2,400 a. What was the firm's net income? Net income $D b. What must have been the firm's revenues? Revenues $C c. What was EBIT? EBIT $N Candy Canes, Inc., spends $262,000 to buy sugar and peppermint in April. It produces its candy and sells it to distributors...
QUESTION 1 Price level AS P1 P2 AD1 AD2 Y2 Y1 Real national output Which of the following would cause the shift in the AD curve (from ADto AD2) shown in the diagram above? A. The government increases interest rates B. The rate if income tax is reduced CA depreciation of the US dollar An improvement in technology QUESTION 2 Which combination of fiscal policies would be the most expansionary? A. an increase in government spending and an increase in...
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