Microeconomics
13th Edition
ISBN: 9781337617406
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 15.1, Problem 3ST
To determine
Related to individual income.
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Keep in mind that you don’t have to die to have to pay inheritance and gift taxes under the current tax code. Anyone who gives a family member more than $11.5 million (as of 2020 indexed annually for inflation) is subject to the tax. Is that amount too high or too low, and why?
Suppose you borrow $1,000 from a bank at a fixed rate of interest (5%) for one year to finance your college education. Explain the redistribution of income that occurs if the rate of inflation that year is 7%. Was this loan advantageous to you or the bank?
Suppose a person earns $500 a month. A social assistance program with a grant
amount of $1,000 a month and a clawback of 90% is implemented. What would be
the payment the person receives from the program and what's the total amount of
money they person will have to their disposal?
The payment from the assistance program is $450 and the total amount of
money the person has to their disposal is $950.
The payment from the assistance program is $550 and the total amount of
money the person has to their disposal is $1000.
The payment from the assistance program is $550 and the total amount of
money the person has to their disposal is $1050.
The payment from the assistance program is $950 and the total amount of
money the person has to their disposal is $1450.
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