Holding other factors constant, if the consumption tax is replaced with an income tax so that saving is taxed, then the real interest rate will ________ and the equilibrium quantity of saving and investment will ________.

Answers

Answer 1

Answer:

Increase, decrease                    

Explanation:

One can answer the above case by applying simple concepts of demand and supply. If the savings are taxed in an economy then individuals will spend more as they will get more benefit from their income by spending rather than by saving, this will lead to more consumption and demand which further leads to more supply of money leading to decrease in the interest rates.

As people will spend more from their income due to higher taxes the savings in the economy will automatically decrease. Such decisions are usually made by governments to tackle recession in the economy.


Related Questions

What is resource partitioning?

Answers

Answer:

See explanation below foe answer.

Explanation:

Resource partitioning is a term that refers to the division of resources that are limited by species in order to avoid competition in an ecological niche. In an environment where organisms are in constant  competition for limited resources, there arises the need for the organisms and different species to find ways in which to coexist with one another.

An example of Resource Partitioning be seen when two species of hummingbirds in a tropical rainforest, each using flower nectar as their main source of food. But, individuals of the same species can compete with each other also.

Final answer:

Resource partitioning is the process by which different species divide and share resources to minimize competition. This allows organisms to coexist and reduce competition for limited resources.

Explanation:

Resource partitioning refers to the process in which different species in a community divide and share resources in order to minimize direct competition. This can involve utilizing different resources, occupying different areas within a habitat, or feeding at different times of the day. By doing so, organisms are able to coexist and reduce competition for limited resources.

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An employee finds out that she is making the same salary as a co-worker who is performing half the amount of work, and she becomes motivated to somehow fix this unfair situation. Which theory best describes this scenario?
a. goal-setting theoryb. VIE theoryc. need theoryd. equity theory

Answers

Answer:

d. equity theory

Explanation:

Based on the scenario being described within the question it can be said that the theory that best describes this would be equity theory. This theory focuses on determining whether the distribution of resources is fair to all individual parties involved. Which is what the employee in this scenario has determined that is not fair and has decided to do something to solve this unfair situation.

The primary difference between commodity money and fiat money is that

Answers

Answer:

Commodity money has intrinsic value whereas the fiat money does not have intrinsic value

Explanation:

Commodity market is the market which have the virtual or physical market place for trading, buying and selling of primary or raw materials. Presently, about 50 major commodity markets worldwide. And this market has intrinsic value, which means that the commodity has value though not used as money.

Fiat money is the currency created as money, usually through government regulation, and has no intrinsic value.

Therefore, the primary value is that the commodity market has intrinsic values whereas the fiat currency does not have.

Paris won a lawsuit against railroad, and was given a settlement check. the check somehow came to be in eddy's possession. eddy indorsed the check to himself and deposited it in his account at bank. paris sued bank, alleging that it was liable to her for having paid the check over an unauthorized indorsement. is bank liable to paris?

Answers

Answer:

Yes under the theory of conversion.

Explanation:

Conversion occurs when an individual takes possession of an item and excercises ownership of it in a way that is in conflict with the real owner's right of possession.

In this instance Eddy paid in a cheque that was not owned by him. The onus was on the bank to confirm from the account owner the real beneficiary of the check.

This would have prevented the conversion of the check through an illegal indorsement.

Conversion is a common type of fraud with regards to dividend warrants where dividend warrants edited to present a different person as the owner of the check.

Opportunity cost refers to current spending habits. 1.changing economic conditions that affect a person's cost of living. 2.storage facilities to make financial documents easily available. 3.trade-offs associated with financial decisions. 4.avoiding the use of consumer credit.

Answers

Answer:

3.trade-offs associated with financial decisions.

Explanation:

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

It is also known as implicit cost.

For example, a student chooses to go to grad school instead of working at a company where she would be paid $350,000 per year. Her opportunity cost of going to grad school is the $350,000 she would have earned if she decided to take the job instead.

I hope my answer helps you

The correct answer is option 3. Trade-offs associated with financial decisions.

Opportunity cost represents the value of the next best alternative that is foregone when a decision is made. It highlights the trade-offs involved in financial and economic choices. For example, if you spend money on a vacation, the opportunity cost is the investment or savings you could have accrued instead.

Understanding opportunity cost is crucial for making informed decisions because it involves evaluating what is sacrificed in pursuit of a particular choice. This concept applies to both personal finance and business decisions, helping individuals and organizations weigh the benefits of different options.

For instance, choosing to spend time on one activity over another means forgoing potential benefits from the alternative activity. By considering opportunity costs, people can better assess the true cost of their decisions and strive for more effective resource allocation.

Christine agrees to marry Barry after he tells her he will buy her a brand-new Rolls Royce within a year of their marriage. After they are wed, Barry refuses to give her the car. What will happen if Christine sues Barry?
A. She will win because of the "one-year rule."
B. She will lose because a promise made in consideration of marriage must be in writing.
C. She will win because a spouse is legally required to keep the promises made to his/her partner.
D. She will lose because Barry's promise of a car is a collateral promise, which must be in writing.

Answers

Answer:

Correct option is (B)

Explanation:

As per Statute of law, for some promises to be enforceable by law, it should be in writing. One of the contracts that require a valuable consideration to be in writing is contract of marriage. In case a party promises to give something of value after marriage, it should be in writing.

Here, Christine will lose the suit as promise made by Barry to buy her a new car after marriage is not in writing. So, promise is not enforceable.

Instead of offering its products through "brick-and-mortar" companies, a book distributor decides to market directly to customers through the U.S. mail. This is an example of:
a. Disintermediation
b. Intensive distribution
c. Exclusive distribution
d. Franchising

Answers

Answer:

a. Disintermediation          

Explanation:

Disintermediation: In finance, the term "disintermediation" is described as the withdrawal of a few specific funds associated with an "intermediary financial institutions", for example, loan associations and banks & savings in order to invest them directly. However, disintermediation generally happens when the inflation rates are being high yet bank interest rates are considered as stagnant and therefore depositors of the bank may receive a good return by investing in mutual securities and funds.

In the question above, the given statement represents disintermediation.

Genesis Company buys equipment for $900 on credit. This transaction will immediately affect: a) the income statement only. b) income statement, retained earnings statement, and balance sheet. c) income statement and retained earnings statement only. d) balance sheet only.

Answers

Answer: D. balance sheet only

Explanation: The transaction will immediately affect the "balance sheet only" not the income statement or retained earnings.

Balance sheet shows the business net worth. Balance sheet shows the financial position of a business listing the liabilities and assets and owners equity at a particular time.

So Genesis buying a new equipment on credit will show in its balance sheet.

____________ makes subordinates aware of the importance of their performance to the organization and aware of their own needs for personal growth, motivating subordinates to work for the good of the organization.

Answers

Answer:

Transformational Leadership

Explanation:

Transformational leadership is a form or theory of leadership whereby the leader encourages employees or workers implement changes, whilst inspiring and motivating them to be innovative. A transformational leader is concerned with helping employees advance to higher levels of morale, confidence and motivation. They motivate employees to work for the good of the organization while also hitting on the aspects on the need for self growth.

Tax cuts _________.A) and increases in government expenditures shift aggregate demand right.B) and increases in government expenditures shift aggregate demand left.C) shift aggregate demand right while increases in government expenditures shift aggregate demand left.D) shift aggregate demand left while increases in government expenditures shift aggregate demand right.

Answers

Answer: A. and increases in government expenditures shift aggregate demand right.

Explanation: Government expenditures or spending affect the aggregate demand, because it is one of the component of aggregate demand. If there is an increase in government spending the aggregate demand will shift to the right.

When there is tax cut or reduction in tax, there will be more disposable income which will increase consumption and savings and in turn shift the aggregate demand to the right.

Final answer:

Tax cuts and increases in government expenditures both result in a rightward shift of the aggregate demand curve. This is because both actions increase the overall demand in the economy.

Explanation:

The correct answer to your question 'Tax cuts _________' is A) and increases in government expenditures shift aggregate demand right. Tax cuts allow consumers to have more disposable income, which increases their purchasing power leading to a rise in consumption. Similarly, when the government increases its expenditures, it directly stimulates economic activity, leading to increased demand. Both of these actions result in a rightward shift of the aggregate demand curve.

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The impact of crowding out


a. is larger in a closed economy as compared to an open economy.


b. is larger in an open economy as compared to a closed economy when fiscal policy is contractionary.


c. is larger in a closed economy as compared to an open economy when the fiscal policy is contractionary.


d. is larger in an open economy as compared to a closed economy

Answers

Answer:

The correct answer is D

Explanation:

The crowding out in economics is defined as the phenomenon which happen when increased government involvement in the sector of the market and the economy substantially affects the remainder of the market through demand or the supply side of the market.

Open economy is the economy where not only the domestic companies but also entities of another country in trade of products whereas the closed economy is the economy where there is no trading activity with the outside economies.

So, the crowding out impact would be larger in the open economy as compare to the closed economy.

Trends Inc. is an apparel company. To keep up with the latest changes in the fashion industry, the company has to come up with innovative designs and follow strict time lines. The culture of the company values aggressiveness, innovation, and risk taking. The members of the organization accept these cultural values. They know exactly what is expected of them and these expectations go a long way in shaping their behavior. In addition to this, the culture of the marketing department is outcome oriented, and the finance department emphasizes attention to detail. The organizational culture of Trends Inc. values aggressiveness, innovation, and risk taking. These characteristics express its ________. dominant culture autocratic culture highly formalized culture subculture reflective culture

Answers

Answer:

Dominant culture

Explanation:

A dominant culture is a culture that is dominant and practiced within a certain organization, ethnicity, etc. This dominant culture could be a language, a certain value or custom.

In the above question, aggressiveness, innovation and risk taking are dominant cultures in Trends Inc. This means that the above 3 values are very dominant feature in the manner of operation and running of the trends Inc.

This means that in Trends Inc, each and every employee of the firm has the above dominant cultures inculcated in them as it is a prerequisite and it shows the firm's values.

Cheers

Answer:

subculture

Explanation:

The core values of Trends's organizational culture are aggressiveness, innovation and risk taking. Adding to the company's core values, the marketing and finance department also have their own specific values (along with the company's) and they are part of the company's subculture. A large company may have one culture that applies to the whole company and several subcultures that complement the company's culture but apply only to specific departments.

When Vanessa, a U.S. citizen, purchases a designer dress from Barneys of New York that was made in Milan, Italy, the purchase is: A. both a U.S. and an Italian import. B. a U.S. import and an Italian export. C. a U.S. export and an Italian import. D. neither an export nor an import for either country.

Answers

Answer:

B. a U.S. import and an Italian export.

Explanation:

A purchase can be considered as an import for a country if such good or service that is purchased in that country is produced and imported from another country or foreign country.

On the other hand, a purchase can be considered an export for a country if the good or service that is produced in that country is exported to a foreign country for purchase.

The designer dress purchased by vanessa, from Barneys of New York that was made in Milan, Italy can be regarded as a U.S. import and an Italian export.

Olivia recently opened a salon. she strategically priced her salon's services slightly lower than that of other popular salons in the neighborhood. subsequently, she handed her customers flyer that listed the prices of various services that she offered in her salon. it also listed the prices charged by two other salons in the area for the same services. the given scenario exemplifies _________.


a. comparative advertising


b. pioneering advertising


c. institutional advertising


d. advocacy advertising

Answers

Answer:

a) comparative advertising

Explanation:

The given scenario exemplifies Comparative Advertising. It is a marketing strategy in which a product or service of a particular company is presented as superior when compared to a competitor's in terms of price, quality, etc. It may involve printing a side-by-side comparison of the features of a company's products next to those of its competitor as here Olivia listed the prices of various services that she offered as well as the prices charged by two other salons in the area for the same services.

Mark brainliest:
13. The main purpose of advertising is to

A. fool consumers.
B. sell goods.
C. entertain consumers.
D. inform consumers.

Answers

Answer:

I think D

Explanation:

The main purpose for advertising is to let customers know that

you have something new in stock unless you want to go broke and

have any cash at all

Answer:

sell goods

Explanation:How will people know what to buy if it is not advertise.

A manufacturer of toilet tissue sent its brand mascot to help refurbish restrooms at fairgrounds across the country. As part of this project, each restroom was to provide fairgoers with a clean oasis featuring aromatherapy, soothing music, constant maintenance, and premium toilet tissue. Newspaper articles about the company's role in making restrooms inviting are an example of ________.

Answers

Answer:

The correct answer is letter "C": publicity.

Explanation:

Publicity is the information spread by a company, entity, or public or private organization to create a favorable atmosphere about itself. This information is transmitted through different communication mediums. Publicity is a resource that allows companies to gain a free space in communication mediums persuading consumers with news about their products or services.

Final answer:

Newspaper articles about a toilet tissue company's mission to upgrade restrooms provide an example of publicity, which enhances brand image and consumer awareness through media coverage.

Explanation:

Newspaper articles about the company's initiative to refurbish restrooms across the country with features like aromatherapy, soothing music, and premium toilet tissue represent an example of publicity.

Publicity refers to the attention that media outlets give to an event, person, or product, often without direct payment from the promoter.

Such articles serve to create a positive image and increase awareness of the company's brand among the public, enhancing its reputation and potentially influencing consumer behavior.

This strategy leverages the informational influence, making the brand more desirable through association with positive changes and improvements in public spaces.

The ultimate goal is to foster favorable consumer sentiments and preferences through indirect, non-paid media coverage.

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