If Maria who is 66, had adjusted gross income of $32,000.The amount deducted as medical expenses is B. $2,400.
How to find the amount deducted as medical expenses?First step is to calculate the total expenses
Total expenses = Prescription medicines + Dentist and doctor expenses + Health insurance premiums + Two pair of eyeglasses
Total expenses =$875+ $1350 + $700+ $185
Total expense = $3,110
Now let calculate the amount deducted as medical expenses
Medical dues limit is : 7.5% of Adjusted gross income (AGI)
Amount deducted as medical expenses = 32,000 x 7.5%
Amount deducted as medical expenses = $2,400
Therefore the correct option is B.
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The complete question is:
in 2021, Maria who is 66, had adjusted gross income of $32,000, paid the following medical expenses. Prescription medicines $ 875 Dentist and doctor expenses 1,350 Health insurance premiums $700 Two pair of eyeglasses 185 What amount can Maria deduct as medical expenses (after the adjusted gross income limitation) in calculating her itemized deductions for 202q
Multiple Choice
$3110
$2400
$710
$0
A 90-day, 10% note for $9,000, dated april 15, is received from a customer on account. the face value of the note is?
a. $9,000.
b. $9,900.
c. $9,225.
d. $8,100.
The face value of a 90-day 10% note for
$9,000, dated April 15 is $9,000.
Bonds often have a face value that
corresponds to their principal or redemption
value. A percentage of face value is used to
calculate interest payments. Depending on
the interest rate payable and the perceived
risk of default, a bond's true value before to
maturity may be larger or lower than its face
value. Bonds' actual value approaches face
value as they get closer to maturity.The per value of the stock is the face value in the case of stock certificates. The per value of the common stock is primarily symbolic. Dividends on preferred stock can be calculated as a percentage of par value.
The death benefit of a life insurance policy
is its face value. In the event that a life
insurance policy has "double indemnity," the
recipient receives double the face value in
case of accidental death.
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1. Describe the fundamental similarities and differences between procurement, manufacturing support and customer-accommodation performance cycles as they relate to logistical control.
1. Procurement - Buying raw materials at the best price to maximize cost-benefit.
2. Production Support - Requirement analysis, raw material delivery, etc. enhance the manufacturing process. Manufacturing assistance.
3. Market distribution performance cycle - Manages product distribution in the market.
What are the similarities and differences between procurement, manufacturing support, and customer-accommodation performance cycles?Generally, The supply chain process is connected to all aspects of business operations, including procurement, production support, and the performance cycle of market distribution. These are related to one another in a few key respects. They are distinct from one another in the following ways:
1. Procurement is the process of acquiring raw materials at the lowest possible cost while maintaining the highest possible level of operational efficiency.
2. Manufacturing Support - The manufacturing process is helped along by several linked operations such as need analysis, the delivery of raw materials, and so on. The term for this kind of assistance is manufacturing support.
3. The Market Distribution Performance Cycle: It is the Management of the Complete Process of Product Distribution in the Market This cycle is the management of the entire process of product distribution in the market.
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Speech is intended to be any of these:
informative
argumentative
persuasive
entertaining
Please help
Answer: all of the above
Explanation:
speech can accomplish all of what you listed but with certain strategy, some ways can be stronger than others.
I have a project to boost a bank's return on assets in Japan with a sustainability goal, so my plan is to develop a child care plan (to boost the population in Japan). My idea is to make it easier for people who have children or families that want to have children to get a loan for child care (daily necessities, etc.) with a long-term payment (10 years?). But what I'm asking is, "How can we make sure that the client pays their long-term loans?" Are there any strategies? And how can I increase the ROA of the bank by doing this?
To make sure th-at the client pays their long-term loans by mak-ing Equated Monthly Installments (EMIs) over an ag-reed period of time with the bank. The install-ments are made up of two ele-ments – principal amount and the interest.
A long-term loan is a lo-an from a bank for a spe-cific amount that has a specified re-payment schedule and a fixed or floating inter-est rate.
Return on Asset (ROA)- After TaxReturn on Assets (ROA) is a profit-ability ratio which indi-cates the net profit (net income) gener-ated on total assets. It is compu-ted by dividing net income by ave-rage total assets. Formula- (Profit after tax/Av. Total assets)*100.
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4. Choose the best answer.
Which statistic about each school is NOT provided by the Common Data Set?
O the average debt incurred through student loans
O housing and meal plan options
O the tuition rate and test scores
O the average starting salary
the average debt incurred through student loans statistic about each school is NOT provided by the Common Data Set.
What is common data set?it is a collaborative effort among data providers in the higher education community and publishers as represented by the College Board, Peterson's, and U.S. News & World Report. The combined goal of this collaboration is to improve the quality and accuracy of information provided to all involved in a student's transition into higher education, as well as to reduce the reporting burden on data providers.It is the development of clear, standard data items and definitions in order to determine a specific cohort relevant to each item.Data items and definitions used by the U.S. Department of Education in its higher education surveys often serve as a guide in the continued development of the CDS.Common Data Set items undergo broad review by the CDS Advisory Board as well as by data providers representing secondary schools and two- and four-year colleges. Feedback from users of CDS is also considered in the annual review process.thus, the average debt incurred through student loans statistic about each school is NOT provided by the Common Data Set.
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The following table shows the production within a very small country’s economy in two consecutive years. What was the real GDP of 2017?
Year Item Quantity Produced Price Per Unit
2017 Oranges 1000 pounds $1.00
2017 Haircuts 2000 haircuts $5.00
2018 Oranges 1500 pounds $1.50
2018 Haircuts 3000 haircuts $7.50
Real GDP in 2017 is $16500
Expenditure in base 2017 =
price Quantity Expenditure
Oranges= $1 1000 1000
Haircut $5 2000 10000
Total 11000
Expenditure in 2018
price Quantity Expenditure Real GDP
Oranges $1.5 1500 2250 1500
haircut $7.5 3000 22500 15000
Total 24750 16500
Nominal GDP: the value of final goods and services at current prices ( Price in current year x quantity in current year)
Real GDP: The value of final goods and services at base year prices. (Price in base year x quantity in currently year)
Real GDP in 2018 with 2017 as base year is $16,500.
Nominal GDP- GDP in nominal terms is GDP expressed in current prices, without inflation adjustment. GDP is estimated at current prices by expressing the values of all goods and services produced during the current reporting period.
Real GDP- Real GDP is a macroeconomic measure of the value of economic output after adjusting for price changes. This adjustment converts nominal GDP, a money-value measure, into an index of total output quantity.
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1. Do you think the United States is ethically required to respond to epidemics and other health crises in foreign countries? Why or why not?
Answer:
yes it is because United States has always been a health crises foreign country
1. Discuss the FIVE (5) responses of the price elasticity of demand. (5M)
Answer:
Perfectly elastic, perfectly inelastic, relatively elastic, relatively inelastic, and unitary elastic demand.
Explanation:
The FIVE (5) responses to the price elasticity of demand are:
1. Perfectly Elastic Demand:
When a small change in the price of a product causes a major change in its demand, it is said to be perfectly elastic demand.
2. Perfectly Inelastic Demand:
A perfectly inelastic demand is one when there is no change produced in the demand for a product with a change in its price.
3. Relatively Elastic Demand:
Relatively elastic demand refers to the demand when the proportionate change produced in demand is greater than the proportionate change in the price of a product.
4. Relatively Inelastic Demand:
Relatively inelastic demand is one when the percentage change produced in demand is less than the percentage change in the price of a product. price of a product.
5. Unitary Elastic Demand:
When the proportionate change in demand produces the same change in the price of the product, the demand is referred as unitary elastic demand.
what is the break even point?
Explanation & Answer:
To put it in simple terms, the break even point is the point at which total cost and total revenue are equivalent.
5. Patrice is creating a report that will contain financial information for each month in the last fiscal year, including
sales, cost of goods sold, fixed costs, variable costs, and scrap costs. This information is quantitative, and he doesn't
want to use a lot of space. What visual aid is best for this?
The best visual aid for creating a report that will contain financial information for each month in the last fiscal year, including sales, cost of goods sold, fixed costs, variable costs, and scrap costs will be a graph.
What is visual aid?Visual aids are visual elements such as graphics, photos, and video clips that are used in addition to audio information. Visual aids are selected according to their purpose of Summarize InformationDescriptive material, such as a movie, slide, or model, is designed to supplement plainly written or spoken information.Mainly visual aids such as charts, maps, models,educational films or film strips.it is the representation of the relationships between data, ideas, information, and concepts that is easy to understand and one of the most important learning strategies. This type of presentation is more effective for understanding and comparing data than a tabular format.Also, it helps to qualify, sort, and present your data in a way that is understandable to a wider audience. Charts allow us to explore of causal relationships between two variables through both time series and frequency distributions. Data from various surveys are charted using symbols such as lines in line charts, bars in bar charts, or slices in pie charts. This visual representation helps clarify, compare, and understand numerical data.to know more about visual representation refer here
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from the chart above, decision makers should pay attention to month?
From the chart above, decision makers should pay attention to the month of September.
Decision makers are the person or a group of individuals who are said to be responsible for making strategically important decisions which are mainly based on a number of variables, including resources available, time constraints, the amount and type of information available and also the number of stakeholders involved.
So, here in the given chart, the decision makers should pay attention to the month of September. As, in the month of September, the monthly cash flow and cash balance tend to decrease a lot.
Hence, a decision maker is said to make challenging decisions.
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Is it possible to put money into circulation less than the value of the economy's goods and services because money has a high value? true or false, explain why.
The statement that it is possible to put money into circulation less than the value of the economy's goods and services because money has a high value is True because the higher currency would reduce prices.
What happens when there is little money in circulation?It is possible that the amount of money in circulation is less than the value of the goods and services in a country and when that happens, the result would be that the value of the currency would have a high value.
As a result, less currency would be needed for buying goods and services which means that prices would decrease as a result. This is therefore sometimes done by the government to combat inflation.
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Which statement is true about down payments?
A. The smaller the down payment, the lower the interest rate.
B. The smaller the down payment, the lower the principal.
C. The larger the down payment, the higher your monthly payments
will be.
D. The larger the down payment, the lower the principal.
The true statement about down payments is (d) The larger the down payment, the lower the principal.
A large down payment reduces the amount of the mortgage/loan that must be borrowed from the bank. The greater the down payment, the less the buyer will need to borrow to complete the transaction, the lower their monthly payments, and the less interest they will pay in the long run.
The larger your down payment, the less you'll have to borrow and the less interest you'll pay. For example, if you borrow $100,000 with a 5% interest rate, you will pay $5,000 in interest just in the first year. However, if you put down an extra $20,000 and borrow only $80,000, your first-year interest will be $4,000—a $1,000 savings.
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Answer: the larger the down-payment, the lower the principal.
Explanation: I took the test and got it right.
Where is the license of an affiliate broker displayed?
Answer:
At the principal place of business of the broker.
Explanation:
You just purchased some Treasury bonds that were quoted at 101:12. What is the market price of your bonds if you purchased $900 in terms of face value?
Market price = $
$220,000 worth of Treasury bonds has a bid price quote of 109:17 and an asked quote of 109:18. In dollars, what is the value of the bid-ask spread on this bond?
Responses
$687.50
$22.00
$68.75
$220.00
1. The market price of your bonds if you purchased $900 in terms of face value is $910.08.
2. In dollars, the value of the bid-ask spread on this bond is B. $22.00.
What is the bid-ask spread?The bid-ask spread is the percentage difference between the bid price and the ask price of a security.
The ask price is the lowest price the security seller will be willing to sell. On the other hand, the bid price is the highest price that the buyer is willing to buy the security.
Face value of bonds = $900
Quoted rate = 101.12
Market price = $910.08 ($900 x 1.0112)
The worth of Treasury bonds = $220,000
Bid price quote = 109:17
Asked quote = 109:18
Bid-ask spread = 0:01% (109:18 - 109:17)
Value of the bid-ask spread = $22.00 ($220,000 x 0.01%)
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ill give 25 points for it
Which two ways can Customer Service and Support affect sales? (Choose TWO)
Select 2 correct answer(s)
Question 1 options:
Coordinating shipping
Distributing marketing information
Closing the deal with rapid engagement
Increased sales through responsiveness and personalization
More sales through customer evangelists
Two ways by which Customer Service and Support can affect sales are:
Distributing marketing informationIncreased sales through responsiveness and personalizationWhat is the benefit of customer service and support to sales?Customer service and support is very important to businesses because it helps them to deal with their customers which are very important to them making sales and profit. In order words, the work of customer service and support is very important to the profitability of a company.
One way that customer service and support can influence sales is by distributing marketing information. For instance, if a customer has an issue, the customer service rep can refer them to some marketing information. Customer service can also lead to increased sales when they engage in personalization and responsiveness and this makes the customer feel appreciated and thereby likely to patronize a company again.
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Answer:
Did you answer my qustion wrong on purpose?
Explanation:
16. The following actions could help to improve energy usage in an organisation: (Please tick the correct answers) 1. Use energy-efficient building materials for future projects, e.g. double glazing, better insulation, and natural sources for heating, cooling, lighting and airflow. 2. Encourage carpooling, public transport and riding or walking to work. 3. Increase ambient temperature in winter and decrease in summer, e.g. set air conditioning to 18°C instead of 22°C in summer. 4. Extend maintenance intervals. 5. Choose energy-efficient vehicles. 6. Establish a carbon offset program for travel or other activities.
Buildings account for 33% of greenhouse gas emissions and 40% of world energy demand. Our attempts to combat climate change will be largely dependent on how sustainable and energy-efficient new construction is.
Additionally, green buildings may benefit investors, businesses, and employees. These actions contribute to greater energy efficiency, lower pollution levels, and even fewer automobiles on the road. Carpooling has been shown in several studies to lower carbon dioxide emissions.
The tilt of the Earth's axis is the key factor. Many people think that the Earth's proximity to the sun during the summer and its distance during the winter is what causes temperature fluctuations. In actuality, the distance between the Earth and the sun is greatest in July and greatest in January.
Regular maintenance programs frequently start on predetermined time- and mileage-based intervals. By averting more significant and expensive problems, the goal of changing components and fluids on a regular maintenance plan is to save money over time.
With a rated energy consumption of 25 kWh per 100 miles, the rear-wheel-drive, standard-range Tesla Model 3 small car will be the most effective EV in 2022.
By funding carbon reduction initiatives, people or organizations, in this example airline passengers and business clients, can "neutralize" their share of an aircraft's carbon emissions for a certain flight.
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Income earned
Customer satisfaction
8. You expect that a project will bring in $25,000 USD in revenue per year. You estimate it will cost $12,000 up front.
You also estimate costs of $200 per month for the first 12 months, which equals $2,400 per year. Using the formula
(G-C) + C = ROI, how would you calculate the project's return on investment (ROI) after the first 12 months?
Estimated Gross Revenue = $25,000 USD
Estimated Upfront cost = $12,000 USD
Estimated monthly cost = $2,400 USD
Total cost = $14,400 USD
Therefore,
ROI = ( G - C )/C
= ( $25,000 - $14,400 )/$14,400
= 0.736 * 100%
= 74%
ROI or Return On Investment is a instrument to measure the percentage of return on every $ investment made. A high ROI means that the return on investment is favorable compared to it's cost and it is highly advisable to investors to invest in a company with high ROI.
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Is there a need to regulate Business Activities?
Find the following values.
a. An initial $500 compounded for 10 years at 6%
b. An initial $500 compounded for 10 years at 12%
c. The present value of $500 due in 10 years at 6%
d. The present value of $1,552.90 due in 10 years at 12% and at 6%
e. Define present value and illustrate it using a time line with data from Part d. How are present values affected by interest rates?
a. An initial $500 compound-ed for 10 ye-ars at 6%.
PV= $500
I=6%
N= 10
FV=?
PMT= 0
FV = PV(1+i)^n
500(1.06)^10= $895.45
b. An initial $500 comp-ounded 10 years at 12%.
I= 12%
N= 10
PMT= 0
PV= -500
FV= ?
FV = PV(1+i)^n
500(1.12)^10= $1552.92
c. The pre-sent va lue of $500 due in 10 yea-rs at 6%
I= 6%
N= 10
PMT=0
PV=?
FV=500
PV = FV/(1+i)^n
PV = $500 / (1.06)^10
= $279
d. The pre-sent value $1,552.90 due in 10 ye-ars at %12 and at %6
I= 12% and 6%
N= 10
PMT= 0
PV= ?
FV= $1,552.90
PV = FV/(1+i)^n
PV = $1,552.90 / (1.12)^10
= $499.99
PV = $1,552.90 / (1.06)^10
= $867.13
e. Present Value
Present Value is today's value of mo-ney received at some point in the future discount-ed at current int-erest rates.
How are present values affect-ed by int-erest rates? The pre-sent value gets small-er as you incr-ease the disco-unt rate.
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Match the examples with the appropriate characteristic of a successful entrepreneur. There are more terms than examples. Each term will only be used once.
Entrepreneurship is essentially the act of creating, setting up, and managing a new business in order to make money while taking on financial risk.
Option 1 - Highly energetic
Option 2 - Self nurturing
Option 3- Tolerant of uncertainty
Option 4- Self directed
Option 5 - Action oriented
Entrepreneurs with lots of energy are top performers. Even while working 18 hours a day is challenging, extremely motivated individuals can manage it. As a result, the extremely energectic characteristic is used in the first case.
When entrepreneurs renew their own joy and energies in growing their firm, they are self-nurturing or fostering self-development. Therefore, the second scenario fits the trait of self-nurturing.
Successful entrepreneurs don't worry about failing. Success is built upon failure. An entrepreneur should be mindful of many uncertainties while starting a business. The third illustration fits the trait of being tolerant of ambiguity.
Being their own boss means being self-driven. Entrepreneurs should develop their own self-awareness and self-control. The self-directed example is the fourth.
The fifth example is appropriate for action-oreinted. When we are able to act, we can make our dreams come true.
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buyer who has the right to purchase a property at a preset price and terms for a period of time
a. Option
b. Novation
c. Bilateral contract
d. Deed
Buyer who has the right to purchase a property at a preset price and terms for period of time "option.
Option is a contract that gives the buyer the right to purchase a property at a preset price and terms for a period of time.
A option contract is a one-of-a-kind agreement between the seller and the buyer. In this agreement, the seller gives the buyer the option to purchase property at a fixed price within a specified time frame.
Therefore, the correct answer will be option (a)
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Explain the following concepts and state their importance and implications:
scarcity
scale of preference
choice
opportunity cost
Scarcity: means limitation of the avail-ability of reso-urces in relat-ion to their wants. That means the avail-able resources are not eno-ugh to comp-letely satisfy all the wa-nts.
A scale of preference: is a list of goods and services (for exam-ple, shoes, socks, bo-oks, hair-cut, and so on) pre-pared for pur-chase in order of priority. It is a prior-ity rating of all indivi-dual wants, according to their import-ance in one's valuation and the means to achi-eve or obtain them.
Choice: refers to the ab-ility of a consumer or prod-ucer to decide which good, service or re-source to purchase or pro-vide from a range of poss-ible options. Being free to chose is regard-ed as a funda-mental indicator of economic well being and develop-ment.
Opportunity cost: is the va-lue of the best alternative for-gone in making any choice.
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WACC ?
Debt: 9,700 7.2 percent coupon bonds outstanding, with 23 years to maturity and a quoted price of 105.75. These bonds have a par value of $1,000 and pay interest semiannually.
Common stock: 260,000 shares of common stock selling for $65.20 per share. The stock has a beta of .97 and will pay a dividend of $3.40 next year. The dividend is expected to grow by 5.2 percent per year indefinitely.
Preferred stock: 8,700 shares of 4.60 percent preferred stock selling at $94.70 per share.
Market: 11.3 percent expected return, a risk-free rate of 3.95 percent, and a 22 percent tax rate.
What is the company's WACC?
The company's WACC, given the risk free rate, the common stock, the debt, and the preferred stock is 8.56%.
How to find the company WACC?The WACC stands for the Weighted Average Cost of Capital and is calculated by multiplying the weight of a source of funding, by the cost of that source of funding, and then adding the results together.
The formula for the Weighted Average Cost of Capital is therefore:
= (Weight of debt x After tax cost of debt) + ( Weight of Common stock x Cost of common stock) + (Weight of preferred stock x Cost of preferred stock)
Debt = $10,257, 750
Common stock = $16,952,000
Preferred stock = $ 823, 890
The total capital for the company is therefore:
= 10,257, 750 + 16,952,000 + 823, 890
= $28,033,640
The WACC is therefore:
= (10,257, 750 / 28,033,640 x 5.23%) + (16,952,000 / 28,033,640 x 10.75%) + (823, 890 / 28,033,640 x 4.86%)
= 8.56%
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the notarial evidence form is completed by:_____.
a. The Notary Signing Agent and returned to the contracting company
b. The closing agent and also kept by the closing agent
c. The closing agent but kept by the Notary Signing Agent
d. The borrower and kept by the Notary Signing Agent as a record
Answer:
A.....While the Notarial Evidence Form is created by the Specialist, it is then returned to the lender or closing agent along with the signed documents. Lenders rely on the form to comply with government or meet their own business practices.
The Notary Signing Agent completes the notarial evidence form and returns it to the contracting business. Thus, the right option is (a.) The Notary Signing Agent returned to the contracting company.
What is notarial evidence?The Notarial Evidence Form is a business record of all notarizations conducted in the course of a loan or real estate transaction (see the Definitions). It is not the same as keeping a journal.
The acknowledgment (when a signer is positively identified by the Notary and acknowledges signing a document in the Notary's presence) and the jurat (when the signer swears or affirms before the Notary that the contents of a document signed in the Notary's presence are true) are the two most common notarial acts.
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Explain why the scenario below fails to meet the definition of decentralized organizational structure.
You are asked to serve on a committee to plan the annual summer picnic. Your committee decides the menu, the location, and the entertainment. You announce the plans to everyone on Friday. On Monday, when you come to work, you notice the plans have been changed by the company CEO.
Communications have to be issued at least a month in advance, so you could create the excitement and prepare employees to look forward to the picnic. Ensure the communication include the broad agendas, timings and a map to reach the venue.
Send out personal invitations to each employee is necessary. Brand the picnic and display posters and communications around the workplace. Consider creating a special website for the picnic.
Planning well in advanced is necessary. Arranging an office picnic is not just about using the budget and arranging things in accordance to it, its about utilizing the budget to its maximum, where it would benefit the company and employees at large.
Given below are some of the important pointers to note, when arranging an office picnic to ensure a good turnaround.
Picking the right time is essential. One should consider the organization's work schedule, employees vacation schedules. Since the picnic involves other family members and children, after work or on a weekend may be best suited.Selecting the venue that is easy to reach, avoid venues that are too far from the locality, hence reducing time spend in travel. Look for a new location each year.Using a theme for the picnic that would make it more exciting and fun especially when there are family members involved. Could be a circus or a pirate theme.Be specific about inviting immediate family members. You can provide employees with an online form, proving details of which family members would be attending, and could serve as an RSVP to plan and encourage employees to attend the eventCommunications have to be issued at least a month in advance, so you could create the excitement and prepare employees to look forward to the picnic. Ensure the communication include the broad agendas, timings and a map to reach the venue.
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What would be the best title for the chart?
???
the right to safety
the right to be informed
the right to choose freely
the right to be heard
the right to satisfy basic needs
the right to redress
the right to consumer education
the right to a healthy environment
It can be inferred that the best title for the chart showing the following rights is the "Consumer Bill of Rights."
What does the consumer bill of rights state?
The Consumer Bill of Rights protects consumers. Consumers have the right to be informed, the right to select, the right to safety, the right to be heard, the right to have problems remedied, the right to consumer education, and the right to service, according to the bill.
It covers four fundamental consumer rights. Safety, information, a diverse range of goods and services at reasonable costs, and a fair hearing on consumer policy by the government
President Kennedy articulated what he referred to as the Consumer Bill of Rights. According to the law, everyone has four fundamental consumer rights: the right to be informed, the right to choice, the right to safety, and the freedom to be heard.
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In order to make medical decisions for her aunt, Kathi will need a(n).
A. power of attorney
B. will
C. trust
D. executor
In order to make medical decisions for her aunt, Kathi will need a power of attorney. The correct option is (A).
What do you mean by the power of attorney?An important legal document known as a power of attorney (POA) enables an individual to designate another person or entity to handle his or her property, medical affairs, and financial matters while he or she is away.
A medical power of attorney (POA) is a legal document that you can use to appoint a representative to make medical decisions on your behalf in the event that you are unable to do so.
If your doctor determines you are unable to make significant choices for yourself, only then can the person you select as your agent exercise the authority a medical POA grants them.
Therefore, in order to make medical decisions for her aunt, Kathi will need a power of attorney.
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How does fiscal policy affect the budget deficit?
Answer: An expansionary fiscal policy leads to higher budget deficits while a contractionary policy reduces deficits.
Explanation:
Fiscal policy refers to the use of the government budget to affect the economy.
The policy is said to be expansionary when the government spends more on budget items such as infrastructure or when taxes are lowered. Such policies are typically used to boost productivity and the economy. Conversely, the policy is contractionary when government spending decreases or taxes rise. Contractionary policies might be used to combat rising inflation.
Generally, expansionary policy leads to higher budget deficits, and contractionary policy reduces deficits.
A deficit can be reduced by using fiscal policy to encourage economic expansion in order to raise tax income and cut spending.
What is fiscal policy?A fiscal policy is one in which the government use taxation, public expenditure, and public borrowing as tools to accomplish specific economic policy goals. In a nutshell, it is the practise of using taxes and expenditure by the government to generate sustainable growth.Budget deficits increase when fiscal policy is expansionary, while deficits decrease when fiscal policy is contractionary. The use of the government budget to influence the economy is referred to as fiscal policy.When the government spends more on budget items like infrastructure or when taxes are decreased, the policy is said to be expansionary. Such measures are frequently employed to strengthen the economy and productivity. In contrast, the policy is contractionary when spending by the government falls or when taxes rise. Inflation may be fought through contractionary policies.To learn more about fiscal policy refer to:
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