Hat is effect of income tax rate increase on interest rates

Assignment Help Business Economics
Reference no: EM131095513

President Obama proposes a higher tax rate on wealthy people. Their income tax may increase from 35% to a level close to or exceed 40%. What is the effect of this income tax rate increase on interest rates in the municipal bond market relative to those in the Treasury bond market? Explain.

Reference no: EM131095513

Questions Cloud

Define steps that required to use door-in-the face strategy : Identify and describe the steps that are required to use the door-in-the face strategy, the list technique, the four-walls technique, and the legitimization of paltry-favors strategy. Familiarize yourself with how researchers have tested the effec..
What are variable costs and what is the marginal cost : Three college students are considering operating a tutoring business in economics. This business would require that they give up their current jobs at the student recreation center, which pay $6,000 per year. A fully equipped facility can be leased a..
Business operation and specifying certain inputs : Could a complete information system be designed by describing a business operation and specifying certain inputs and outputs? Explain your answer.
Compute the implied ending inventory balance : Assume that Walgreen's Year +1 revenue growth rate, gross profit margin, and inventory turnover will be identical to Year 8. Project the average inventory balance in Year +1 and use it to compute the implied ending inventory balance.
Hat is effect of income tax rate increase on interest rates : President Obama proposes a higher tax rate on wealthy people. Their income tax may increase from 35% to a level close to or exceed 40%. What is the effect of this income tax rate increase on interest rates in the municipal bond market relative to tho..
Network hardware component : Identify one network hardware component that either; your network uses, a network you have access to uses or failing that a network component that you are interested in.
Discussion on when good decisions go bad : Provide an example of a decision making process that you were involved in that ended poorly (it could be at work, but it doesn't have to be). Why do you think it went wrong? What happened next?
Considering the purchase of new computer system : Galvanized Products is considering the purchase of a new computer system for their enterprise data management system. The vendor has quoted a purchase price of $100,000. Galvanized Products is planning to borrow 1/4th of the purchase price from a ban..
Determine the tums ratio of the transformer : Design and development department associated with a power generation plant has various issues which require resolving. You are now asked to provide a series of written solutions on the analysis.

Reviews

Write a Review

Business Economics Questions & Answers

  Offered some securities for sale to the public

In March 2012, Daniela Motor Financing (DMF), offered some securities for sale to the public. Under the terms of the deal, DMF promised to repay the owner of one of these securities $200 in March 2052, but investors would receive nothing until then. ..

  What are the corresponding retail and wholesale prices

The marginal cost of production is $30. Which product should go to the retail market and which should go to the wholesale market? What are the corresponding retail and wholesale prices? What would happen if the sales are switched from the retail t..

  What is meant by the natural real interest rate

First, discuss what is meant by the "natural real interest rate". Second, explain what effect each of the following will have on the natural real interest rate: (1) a reduction in government spending; (2) an increase in the nominal money supply.

  Purchase particular type of cell phone

Suppose Katie, Kendra, and Kristen each purchase a particular type of cell phone at a price of $80. Kate's willingness to pay was $100, Kendra's willingness to pay was $95, and Kristen's willingness to pay was $80. For the three individuals together,..

  Illustrate what additional effects follow initial effect

Illustrate what additional effects follow this initial effect. Illustrate what is total effect of tax cut on aggregate demand.

  Values of exchange rate in the short and long run

R = 3% (annual domestic interest rate), R* = 5% (annual foreign interest rate) E = 2 (current spot rate; expressed as the price of pound in terms of us dollar) If the domestic money supply increases by 10% and drive the interest rate down by 1% in th..

  Economic theory would suggest that the profitability

Economic theory would suggest that the profitability of an industry would be

  Suppose the production function for pasta

Suppose the production function for pasta is Q = 4kl. What is the long-run optimal input combination when Q = 16 , r = 4, and w = 36 ?

  Employment contract with computers

In March 2011 Chu, at age 50, decides to retire. As part of his employment contract with Computers Pty Ltd, Chu had agreed that he will not compete against the company in New South Wales for two years.

  What are the monthly payments for traditional mortgage

Mark Sexton and Todd Story, the owners of S&S Air, Inc., were impressed by the work Chris had done on financial planning. Using Chris’s analysis, and looking at the demand for light aircraft, they have decided that their existing fabrication equipmen..

  If interest is compounded per year

If interest is compounded at 15% per year, how long (i.e., the number of year-long periods) will it take for $50,000 to accumulate to $66,125? Hint: you can check your work using the FV function in Excel with the annual payment set to zero, since we ..

  Characteristic of a flexible exchange system

Characteristic of a flexible exchange system. Interest rate expectations under interest rate parity, assume interest rate holds what happens to exchange rates. Explain how the environment of a multinational impacts repatriation of foreign profits.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd