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Suppose state income taxes and local income taxes are treated as expenses for purposes of calculating federal taxable income and hence federal income taxes. Determine the effective income tax rate when the federal income tax rate is 31%, the state income tax rate is 6%, and the local income tax rate is 1%. The effective income tax rate is ___% (Round to 2 decimal places.)
The demand for housing is often described as being highly cyclical and very sensative to housing prices and interest rates. Given these characteristics, describe the effect of each of the following in terms of whether it would increase or decrease th..
Assume an economy with an aggregate production function of the form Y = 1.5K. If the nation’s population grows at 5%, the rate of depreciation is 3%, and the savings rate is 8%, what is the steady-state output per capita level?
Estimates for a proposed small public facility are as follows: Plan A has a first cost of $50,000, a life of 25 years, a $5,000 market value, and annual maintenance expenses of $1,200.
A restraint manager believes he will need all new kitchen appliances in 2 years. The cost today is $48,800 but costs are going up at 10% per year. Find the semi annual payments needed f funds earns 5% compounded semi annually. Round to the nearest do..
A specific McDonald’s franchise owner is looking at elasticities of Big Macs. E(p)= 2 (Price), E(i)=1 (Income), E(mt)=1.5 (m=Big Mac, t= Taco). The franchise owner would like to increase the price of Big Macs by 6%. If the franchise owner currently s..
Elucidate why would a system of marketable pollution permits leads to less costly pollution abatement and a higher concentration of polluted areas than a command-and-control system.
Suppose a government wishes to ensure that its citizens can afford adequate housing. Consider three ways of pursuing that goal. one method is pass a law requiring that rents be cut by one-fourth.
A company currently has a machine (defender) which was purchased 9 years ago at a cost of $70,000 and an expected annual operating cost of $ 16,000. It was expected to last 15 years with a salvage value of $ 18,000. Analyze the defender (new) v. the ..
Using aggregate demand and aggregate supply analysis, explain the happy coincidence of both low inflation and decreasing unemployment in the United States during the roaring nineties
Explain the ways in which Fiscal Policy and Monetary Policy interact by using Keynesian IS and LM curves. Discuss the impact of an expansionary Fiscal Policy and Monetary Policy on the overall level of economic activity. Include the conditions in whi..
what happens to the amount of debt held by the public. What would happens to the level of gross debt.
Productivity declines may worsen recessions by causing unit labor costs to:
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