In the two-period model, suppose a household's income in the first period is $40,000, income in the second period is $50,000, and the real interest rate is 25 percent. The government proposes to give the household a tax rebate of $5,000 in the first period, but will tax the household an additional $5,000 × 1.25 = $6,250 in the second period. The household is ____ under the government's tax rebate plan compared with before.
A. better off
B. worse off
C. equally well off
D. possibly better off and possibly worse off
Answer: C
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Hinger Corporation is considering a capital budgeting project that would require investing $120,000 in equipment with an expected life of 4 years and zero salvage value. Annual incremental sales would be $350,000 and annual incremental cash operating expenses would be $250,000. The project would also require an immediate investment in working capital of $10,000 which would be released for use elsewhere at the end of the project. The project would also require a one-time renovation cost of $40,000 in year 3. The company's income tax rate is 30% and its after-tax discount rate is 11%. The company uses straight-line depreciation. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting.The total
cash flow net of income taxes in year 2 is: A. $49,000 B. $79,000 C. $100,000 D. $70,000
TheIP address is obtained either by looking it up in a configuration file or dynamically,via the ______________
Fill in the blanks with correct word
A factory manufacturing line was slow to produce products and was failing to meet quotas. The manager recommendation was to do a time-and-motion study. This is a strong first step.
Answer the following statement true (T) or false (F)
The FCC has defined broadband as faster than 200 Kbps. Almost everyone today would consider 200 Kbps to be an extremely fast connection.
Answer the following statement true (T) or false (F)