Refer to Table 18-10. A tax exemption is granted for the first $10,000 earned per year. Suppose you earn $75,000
a. What is the amount of taxes you will pay?
b. What is your average tax rate?
c. What is your marginal tax rate?
a. ($6,000 × 0.10 ) + ($14,000 × 0.15 ) + ($24,500 × 0.25 ) + ($20,500 × 0.30 ) = $600 + $2,100 + $6,125 + $6,150 = $14,975
b. approximately 20%
c. 30%
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GDP measured using current prices is called ________.
A. real GDP B. deflated GDP C. nominal GDP D. constant GDP
Why may equity finance be preferred to debt finance for developing countries?
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A. the fact that business had hit bottom and was ready to rebound. B. The efforts of the Roosevelt Administration to stimulate the economy. C. Both the efforts of the Roosevelt Administration and the readiness of business to rebound. D. Neither the efforts of the Roosevelt Administration nor the readiness of business to rebound.