14) If taxes are $2,000 when income is $15,000 and they are $3,000 when income is...
14) If taxes are $2,000 when income is $15,000
and they are $3,000 when income is $19,000, then the marginal tax
rate is
20%.
25%.
30%.
40%.
16) If your income increases from $10,000 per year to $14,000 per year and your tax payment increases from $2,000 to $2,840, the marginal tax rate
is 20%.
is 21%.
is 25%.
cannot be determined form the given data.
20) GDP excludes most nonmarket transactions. Therefore, GDP tends to
underestimate the rate of inflation in the economy.
overestimate the rate of inflation in the economy.
overestimate the amount of production of the economy.
underestimate the amount of production in the economy.
21) In the second quarter (three-month period) of 2016, U.S. nominal GDP increased but U.S. real GDP declined. We can conclude that
nominal income declined by more than personal income.
real wages declined by more than real GDP.
the price level fell by more than real GDP.
the price level rose by more than nominal GDP.
Homework Answers
14ans) option b 25%
16ans) option b 21%
20ans) underestimate the amount of production in the economy
21ans) the price level rose by more than nominal GDP
Add Answer to:
14) If taxes are $2,000 when income is $15,000
and they are $3,000 when income is...
8. Inflation-induced tax distortions Sam receives a portion of his income from his holdings of Interest-bearing...
8. Inflation-induced tax distortions Sam receives a portion of his income from his holdings of Interest-bearing U.S. government bonds. The bonds offer a real Interest rate of 2.5% per year. The nominal interest rate on the bonds adjusts automatically to account for the inflation rate. The government taxes nominal Interest income at a rate of 10%. The following table shows two scenarios: a low-inflation scenario and a high- inflation scenario. Given the real interest rate of 2.5% per year, find...
8. Inflation-induced tax distortions Andrew receives a portion of his income from his holdings of interest-bearing...
8. Inflation-induced tax distortions Andrew receives a portion of his income from his holdings of interest-bearing U.S. government bonds. The bonds offer a real interest rate of 4.5% per year. The nominal interest rate on the bonds adjusts automatically to account for the inflation rate. The government taxes nominal interest income at a rate of 10%. The following table shows two scenarios: a low-inflation scenario and a high- inflation scenario. Given the real interest rate of 4.5% per year, find...
8. Inflation-induced tax distortions Kenji receives a portion of his income from his holdings of interest-bearing...
8. Inflation-induced tax distortions Kenji receives a portion of his income from his holdings of interest-bearing U.S. government bonds. The bonds offer a real interest rate of 2.5% per year. The nominal interest rate on the bonds adjusts automatically to account for the inflation rate. The government taxes nominal interest income at a rate of 10%. The following table shows two scenarios: a low-inflation scenario and a high-inflation scenario. Given the real interest rate of 2.5% per year, find the...
Attempts: Keep the Highest: /2 8. Inflation-induced tax distortions Eric receives a portion of his income...
Attempts: Keep the Highest: /2 8. Inflation-induced tax distortions Eric receives a portion of his income from his holdings of interest-bearing U.S. government bonds. The bonds offer a real interest rate of 2.5% per year. The nominal interest rate on the bonds adjusts automatically to account for the inflation rate. The government taxes nominal interest income at a rate of 10%. The following table shows two scenarios: a low-inflation scenario and a high- inflation scenario. Given the real interest rate...
Consider a simple economy that produces two goods: apples and envelopes. The following table shows the prices and quantities of the goods over a three-year period.
Consider a simple economy that produces two goods: apples and envelopes. The following table shows the prices and quantities of the goods over a three-year period. Use the information from the previous table to fill in the following table. From 2015 to 2016, nominal GDP _______, and real GDP _______.The inflation rate in 2016 was _______.Why is real GDP a more accurate measure of an economy's production than nominal GDP? Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP...
When the money demand curve shifts right and the money supply is unchanged, the equilibrium price...
When the money demand curve shifts right and the money supply is unchanged, the equilibrium price level decreases and the equilibrium value of money increases. true false The money supply in Grayfield is $8 billion. Nominal GDP is $32 billion and real GDP is $24 billion. The central bank of Grayfield has instituted a policy of zero inflation. Assuming that velocity is stable, if real GDP grows by 2.5 percent this year then the central bank of Grayfield will increase...
Consider a simple economy that produces two goods: cupcakes and muffins. The following table shows the prices and quantities of the goods three-year period.
Consider a simple economy that produces two goods: cupcakes and muffins. The following table shows the prices and quantities of the goods three-year period. Use the information from the preceding table to fill in the following table. From 2018 to 2019, nominal GDP _______ . and real GDP _______ . The inflation rate in 2019 was _______ . Why is real GDP a more accurate measure of an economy's production than nominal GDP? Real GDP is not influenced by price changes, but nominal GDP is.Nominal GDP...
1. Jordan loaned Taylor $1,200 on March 15, 2009. Taylor returned $1,260 on March 14, 2010....
1. Jordan loaned Taylor $1,200 on March 15, 2009. Taylor returned $1,260 on March 14, 2010. Inflation was 2% over the 1-year period. What is the real interest rate that Taylor paid? 5% 2% 3% 7% 2. Which of the following is an example of money illusion assuming that inflation is 5%? You receive a 10% raise at your part-time job and start spending extra money on entertainment every weekend. You do not receive a raise at your part-time job...
1. TRUE/FALSE( 1 mark per question, 20 marks in total) 11] An economy's income is the...
1. TRUE/FALSE( 1 mark per question, 20 marks in total) 11] An economy's income is the same as its expenditure because every transaction has a buyer and a seller. [21 GDP is the market value of all final goods and services produced by a country's citizens in a given period of time. 3] If nominal GDP is $10,000 and real GDP is $8,000, then the GDP deflator is 125. 14) Other things equal, in countries with higher levels of real...
An increase in government spending of $200 million financed by a new tax of $200 million...
An increase in government spending of $200 million financed by a new tax of $200 million in an economy with a marginal propensity to consume of .90 could result in an increase in nominal GDP (assuming a closed economy with no taxes or leakages) of up to how much? (a) $0; (b) $2,000 million; (c) $180 million; (d) $200 million. 2. One important consequence of widened income and wealth disparities is a: (a) higher rate of inflation than would exist...
8. Inflation-induced tax distortions Sam receives a portion of his income from his holdings of Interest-bearing U.S. government bonds. The bonds offer a real Interest rate of 2.5% per year. The nominal interest rate on the bonds adjusts automatically to account for the inflation rate. The government taxes nominal Interest income at a rate of 10%. The following table shows two scenarios: a low-inflation scenario and a high- inflation scenario. Given the real interest rate of 2.5% per year, find...
8. Inflation-induced tax distortions Andrew receives a portion of his income from his holdings of interest-bearing U.S. government bonds. The bonds offer a real interest rate of 4.5% per year. The nominal interest rate on the bonds adjusts automatically to account for the inflation rate. The government taxes nominal interest income at a rate of 10%. The following table shows two scenarios: a low-inflation scenario and a high- inflation scenario. Given the real interest rate of 4.5% per year, find...
8. Inflation-induced tax distortions Kenji receives a portion of his income from his holdings of interest-bearing U.S. government bonds. The bonds offer a real interest rate of 2.5% per year. The nominal interest rate on the bonds adjusts automatically to account for the inflation rate. The government taxes nominal interest income at a rate of 10%. The following table shows two scenarios: a low-inflation scenario and a high-inflation scenario. Given the real interest rate of 2.5% per year, find the...
Attempts: Keep the Highest: /2 8. Inflation-induced tax distortions Eric receives a portion of his income from his holdings of interest-bearing U.S. government bonds. The bonds offer a real interest rate of 2.5% per year. The nominal interest rate on the bonds adjusts automatically to account for the inflation rate. The government taxes nominal interest income at a rate of 10%. The following table shows two scenarios: a low-inflation scenario and a high- inflation scenario. Given the real interest rate...
1. TRUE/FALSE( 1 mark per question, 20 marks in total) 11] An economy's income is the same as its expenditure because every transaction has a buyer and a seller. [21 GDP is the market value of all final goods and services produced by a country's citizens in a given period of time. 3] If nominal GDP is $10,000 and real GDP is $8,000, then the GDP deflator is 125. 14) Other things equal, in countries with higher levels of real...
Most questions answered within 3 hours.
-
1. When a nearsighted person looks at an object that is in the
distance with their...
asked 21 minutes ago -
QUESTION 8
Both of these statements will store the same value in the
variable $number
$number...
asked 46 minutes ago -
The price of 1 lb of potatoes is $1.75. If all the potatoes sold
today at...
asked 1 hour ago -
Garcia Company issues 20.00%, 15-year bonds with a par value of
$470,000 and semiannual interest payments....
asked 1 hour ago -
In C++ Programming, Try using loops only.
This lab demonstrates the use of the While Loop...
asked 2 hours ago -
Effect of DCMU and sodium azide on Chlamydomonas? We did an
experiment where we had Chlamydomonas...
asked 3 hours ago -
1a) According to the ideal gas law, _______________.
a. a gas has infinite volume at absolute...
asked 4 hours ago -
Oakdale Fashions, Inc. had $245,000 in 2018 taxable income.
Using the tax schedule in Table 2.3...
asked 5 hours ago -
The marketing class at CSUS had an average score of 150. An
educational analyst determined that...
asked 6 hours ago -
Justin Case has purchased a $250 000 home by putting 20 % down
and taking out...
asked 6 hours ago -
1. In a labor market, marginal cost for a firm is
____________.
a. recruiting cost
b....
asked 7 hours ago -
On January 1, 2019, ABC Company issued $60,000,000 of 20-year,
10.5% bonds when the market rate...
asked 7 hours ago