Microeconomics
Is each of the following situations an example of savings, investment, or neither? In each case explain your choice.
(a) A savings and loan association lends money for the purchase of “junk" (not backed) bonds.
(b) The city of Los Angeles rebuilds highways after an earthquake.
(c) In order to improve the income earning potential of current welfare recipients, the
federal government increases the size of income transfers.
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John and Jane Doe are married retired taxpayers who care for
their three-year-old grandson. The following information was
provided to you as documentation necessary to prepare their 2017
tax return. You will gather the appropriate information and
complete the forms provided in Blackboard (1040, Schedule A,
Schedule B and Schedule D) in preparation of their tax file. Please
note that the forms provided may not match the tax year of the
course, as IRS forms are not available until just...
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