B. increases employment.
C. decreases potential GDP.
D. Both answers A and B are correct.
E. Both answers B and C are correct.
Answer:
The correct answer is option C.
Explanation:
An increase in income tax will cause the disposable income of the consumers to decline. It will thus reduce consumer spending.
A reduction in the demand for goods and services will cause production to decrease. Firms will need fewer workers to produce output so employment will also decline.
This will further cause the aggregate demand and potential GDP to decline.
Answer:
Explanation:Cost Benefit Principle is an accounting principle and it states that, "the cost of providing financial information in the financial statements must not outweigh the benefit of that information to the users". It can also be referred to as
cost benefit relationship and it simply says that no financial information is free.
Answer:
II. The Federal Government spends more than it collects in taxes in a given year.
Explanation:
A federal budget deficit is when government spending exceeds income from taxes.
I hope my answer helps you
Assuming you make no deposits or withdrawals over the next month, how much
interest will you earn during the month?
Answer:
$0.15
Explanation:
Interest is calculated using the formula below.
I = P x i x t
where I = interest
P= principal amount.
i=interest rate
t=time
Interest is given as an annual percentage. A 2.75 % interest will translate to 2.75/100 divided by 12 monthly interest. Therefore, the applicable interest rate is 0.00229 %
interest for the month will be
i=$65 x 0.00229 x 1
=$0.14895
=$0.15
b. Profit distribution.
c. The method by which the business can be dissolved.
d. The method of customer service observed.