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Donald is a civil engineer with an annual salary of $98,000. He has dividends and interest of $7500 for the year. Total exemptions and deductions are $10,500. (a) Calculate federal income taxes as a person filing single. (b) Determine what percentage of his annual salary goes toward federal income taxes. (c) Calculate by how much the total of exemptions and deductions has to increase for Donald’s income taxes to go down by 10%. (d) The taxes paid to each of the state and federal governments
Consider an individual whose utility function is U = X0.5Y0.5. If she consumes 3 units of X and 4 units of Y, then some level of utility will be experienced. If the individual instead consumes 2 units of Y, how much of good X must she consume in orde..
Explain using the money market graph, what happens when (1) the price level (CPI) goes up, (2) when the discount rate is lowered and (3) when the Fed sells more bonds on the market. What will happen to the equilibrium interest rate in each case?
Describe a pricing decision your company has made. Was it optimal? If not, why not? How would you adjust the price? Compute the profit consequences of the change.
If a monopolist must lower the price on all units in order to sell an additional unit, For a perfectly competitive firm,
Elucidate how does the real wage rate at point c compare with the real salary rate at point a. How do nominal wage rates compare at those two points.
If lenders expect a higher rate of inflation, then
In 1992, thirst Bush administration was worried about a lingering recession. The administration announced that households would receive a reduction in their taxes for the year 1992. However, this was not accompanied by a reduction in tax rates, and t..
The 1st way is simply to utilize the price of the product in the exporter's home marketplace as the fair marketplace value.
When a perfectly competitive firm is producing at its profit maximizing level of output, its MR is equal to price and its MC while it may or may not be making an economic profit. The price a profit maximizing monopoly charges is always greater than i..
Why might M1 and M2 grow at very different rates during a given year? If excessively rapid growth in the money supply is associated with all inflationary episodes, why do central banks ever allow the money supply to increase so rapidly?
Suppose that twin eye doctors work across the hall from each other. Even their parents have trouble telling them apart, and they both went to the same medical school. From this information, we would guess that the price elasticity of demand for eithe..
Should the Federal Reserve Board of Governors remain independent. Illustrate what is the strongest argument on either side
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