Sabrina is a college professor in Houston, Texas who earns a salary of $95,000. She is single, just put down $25,000 on a new townhouse, and has no children. Explain if Sabrina has any way of reducing her payroll taxes or her personal income tax
What will be an ideal response?
Sabrina has no way of reducing payroll taxes (Social Security tax and Medicare tax) unless she takes a cut in salary. She can reduce her personal income tax by claiming her $3,950 personal exemption, she can deduct her mortgage interest from the mortgage she pays on her new townhouse, she can donate to charity and claim those donations as deductions, and she can deduct any contributions she may be able to make to a pension or retirement plan.
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a. The London Company b. The New Plymouth Company c. The Hudson Bay Company d. The Massachusetts Bay Company
The main source of profit for financial institutions is
a. their ownership of stocks in commercial corporations. b. their ownership of real assets received in foreclosures on loans to households. c. the fees charged for holding and servicing checking accounts. d. the difference between interest paid on deposits and interest received on loans. e. the difference between the cost of creating new money and the interest paid on loans.
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a. consumption of a common resource good. b. production of a public good. c. consumption of a club good. d. production of a private good.
Induced expenditure is the portion of planned aggregate expenditure that:
A. depends on output. B. equals aggregate output. C. equals planned spending. D. equals autonomous expenditure.