Senate approves obama tax cut plan

Assignment Help Macroeconomics
Reference no: EM132471562

Senate Approves Obama Tax Cut Plan

The U.S. Senate has passed legislation extending Bush-era tax cuts for high-income earners to middle-class Americans earning up to $250,000 per year.

Source: Financial Times, July 26, 2012

Fact: Middle and low-income earners spend almost all their disposable incomes. High-income earners save a significant part of their disposable incomes.

a. Explain the intended effect of extending tax cuts for middle-class Americans but not for high-income families. Draw a graph to illustrate the intended effect.

b. Explain why the effect of tax cuts depends on who receives them.

Reference no: EM132471562

Questions Cloud

Equilibrium price and quantity of product a : Provide your answer and justify your reasoning using graph(s) to illustrate.
Events on the market for electric guitars : Consider the market for electric guitars, a normal good. Use well-labeled supply and demand diagrams to illustrate the effects of the following events
Calculate the total cost for selecting retail space : Calculate the total cost for selecting Retail Space B for a 2-year lease. Calculate the total cost for selecting Retail Space A for a 1-year lease.
What percentage did the wage rise during this 6 year period : By what percentage did the wage rise during this 6 year period? Please show your calculations and round your answer to the nearest whole percentage point
Senate approves obama tax cut plan : The U.S. Senate has passed legislation extending Bush-era tax cuts for high-income earners to middle-class Americans earning up to $250,000 per year.
Calculate land and land improvements and buildings : Calculate the balance at December 31, 2020 in each of the following balance sheet accounts. (Hint: Disregard the related accumulated depreciation)
Analyse wireless data communication technology : Describe, explain critically and analyse wireless data communication technology along with associated security issues and Critically analyse enterprise
Is marcus able to save on the present for his wife : Prior to the anniversary, Marcus receives the bracelet from his aunt. Is Marcus able to save $1,815 on the present for his wife?
What has the booming economy done to the market : What has the booming economy done to the market for renting apartments in NYC? (Ignore the market for other kinds of housing.)

Reviews

Write a Review

Macroeconomics Questions & Answers

  Exports and imports total in the billions of dollars

Exports and imports total in the billions of dollars for each country. Explain what this tells you about our society.

  Calculate the expected market price

Suppose you are the manager that sells a commodity in a market that is, for all intents and purposes, a perfectly competitive market.

  Phrase in the international economics

Purchasing power parity conversion factor is a common phrase in the international economics. What is the meaning of this phrase?

  Describe how does gnp differ from gdp

When calculating GDP, describe the significance of each component in the expenditure approach How does GNP differ from GDP Is GDP a reliable economic indicator to predict the changes in the business cycle

  What are comparable eacs for the two alternatives

If you drive 10,000 miles per year, which tire should you buy? Tire A costs $65 and should last 40,000 miles. Tire B costs $85 and should last 60,000 miles.

  Assessing income statements using percentage-of completion

Constructing and Assessing Income Statements Using Percentage-of Completion On March 15, 2014, Frankel Construction contracted to build a shopping center at a contract price of $125 million. The schedule of expected (which equals actual) cash coll..

  Research government policies and regulation

Examine the major effects that government policies have on production and employment. Predict the potential effects that government policies could have on your company.

  Contractionary and expansionary options of the fed

What are the policy choices for contractionary and expansionary options of the Fed. What could you do to restore stable prices during high inflation?

  Describe what happens to the money supply, interest rates

What happens to the money supply, interest rates, and the economy in general if the Federal Reserve is a net seller of government bonds?

  Explain why a firm would exit the industry

Provide a graphical analysis to explain why a firm would exit the industry and the effect of its exit on the industry. (Hint: Use MR and MC approach and short-run competitive equilibrium for a firm and industry to graph the effect)

  Which nation has an comparative advantage

Which nation has an comparative advantage in the production of tungsten.

  How do economies in transition handle privatization

Explaining What are the contrasting approaches to economic growth in Taiwan and China?

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