in the short run, if the fed wants to raise the federal funds rate, it

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Answer 1

The choice (i) is correct. The Federal Reserve raises borrowing costs in order to reduce the economy's money supply. Therefore, the Fed advises selling government securities on the open market, which removes market liquidity and reduces the money supply.

The Federal Reserve oversees the economy and makes decisions based on various economic cycles and fluctuations. In this case, the Fed employs monetary policy.

What exactly does the Federal Reserve do?

In order to support a robust economy for U.S. households, communities, and businesses, the Federal Reserve keeps an eye on the risks to the financial system and participates both domestically and internationally.

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Full Question = In the short run, if the Fed wants to raise the federal funds rate, it:

(i) instructs the New York Fed to sell government securities in the open market.

(ii) instructs the New York Fed to sell government securities in the foreign exchange market.

(iii) instructs the New York Fed to buy government securities in the open market.

(iv) instructs large commercial banks to sell government securities in the open market.

(v) tells large commercial banks to raise their interest rates.


Related Questions

the evaluation of the impact of different tax scenarios/alternatives on various outcome measures including the amount of taxable income or tax paid is called:

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The names and addresses of organizations that have increased their unrelated business taxable income by sums paid must be kept on file by all tax-exempt organizations.

What does the term "tax obligations" mean?

Tax liability is the total amount of tax that people and companies owe to the federal, state, and local governments in a specific time frame. Tax liabilities are short-term obligations for firms that are listed on a balance sheet and paid off within a year.

What is tax planning, and what are some of its goals and significance?

Analysis of a financial condition with the aim of lowering tax liabilities is referred to as tax planning. The tax plan makes sure that every component of the financial plan functions in concert to reduce tax contributions. Individuals can ensure they can maximize their tax capabilities by engaging in tax planning.

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decides to subcontract a portion of its tax return preparation work to an unaffiliated income tax service provider. what does need to do to outsource tax work to the service provider?

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To outsource the tax work it needs to Ensure that DH has appropriate controls in place to protect the confidentiality of the client data,  Disclose to the client that services may be performed by DH and  Have a contractual agreement with DH to protect the confidentiality of client information

Outsourcing is a contract wherein one company contracts another company to handle a planned or ongoing operation that is being or might be handled internally. It occasionally entails the transfer of assets and people from one company to another. No later than 1981, the phrase "outside resourcing" gave rise to the term "outsourcing."

The idea, which The Economist claims has "made its presence known since the time of the Second World War," frequently entails the contracting out of an operation and/or non-core function, such as manufacturing, building maintenance, or call center/call center support, as well as a business process (for example, payroll processing, claims processing).

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what should you include in your report to address their concerns? a calculation of costs and a time frame for implementing the proposal a list of pros and cons criteria for comparison

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A calculation of cost and a time frame for implementing the project should be included in your report to address their concerns

Cost estimation is the process that determines a budget that satisfies the financial commitment required for a project to be successful by taking into consideration direct costs, indirect costs, and other factors.

Any project, from building a bridge to creating that next big app, can benefit from using project cost estimation tools. Because everything costs money, the more certain you are of the amount needed, the more likely it is that you will succeed in your goal.

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Which of the following is NOT considered​ money? A. Certificates of deposit. B. Credit cards. C. Debit card transactions. D. Money market mutual funds.

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Credit cards are not regarded as money. Typically, the annual percentage rate on credit cards is greater APR.

What exactly qualifies as a money market account?

Money market accounts, commonly referred to as money market deposit accounts MMDAs, are interest-bearing bank accounts that are especially made to safely retain a depositor's savings. They offer interest on the funds you leave in your account and are often FDIC insured, just like the majority of savings accounts.

Which 3 deposit methods are available?

Demand deposits fall into one of three categories within this group: Checking, savings, and money market accounts are the first three types of accounts (we will go into these in more detail later).

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an increase in interest rates causes the select an answer and submit. for keyboard navigation, use the up/down arrow keys to select an answer. a quantity demanded of money to increase. b quantity demanded of money to decrease. c demand for money to increase. d demand for money to decrease.

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An increase in interest rates causes the quantity demanded of money to decrease.

Quantity demanded is a term used in economics to describe the total amount of a good or service that consumers demand during a given time interval. It depends on the price of the good or service in the market, regardless of whether that market is in equilibrium.

Demand is the quantity of a good or service that consumers are willing and able to buy at given prices during a given period of time. Quantity demanded is the amount of a good or service that people will buy at a specific price at a specific time.

The quantity demanded by consumers will determine the price of goods and services. The relationship between quantity and price can be understood from the demand curve.

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the discount rate is select an answer and submit. for keyboard navigation, use the up/down arrow keys to select an answer. a the interbank overnight lending rate of at least 1 million dollars. b the rate that a bank pays the fed when it borrows from the fed. c the rate that the treasury pays when it borrows from the fed. d none of the above.

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option (b). correct. the rate that a bank pays the fed when it borrows from the fed at which commercial banks borrow and lend their extra reserves.

The Fed conducts monetary policy by setting a target for the federal funds rate, the rate at which banks borrow and lend reserves on an overnight basis. The Fed influences interest rates to affect interest-sensitive spending, such as business capital spending on plant and equipment, household spending on consumer durables, and residential investment. The overnight bank funding rate is a measure of wholesale, unsecured, overnight bank funding costs. It is calculated using federal funds transactions, certain Eurodollar transactions, and certain domestic deposit transactions. The federal funds rate is the target interest rate set by the Fed at which commercial banks borrow & lend their extra reserves to one other overnight. This is the correct option.

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on january 1, a company issued and sold a $400,000, 8%, 10-year bond payable, and received proceeds of $395,000. interest is payable each june 30 and december 31. the company uses the straight-line method to amortize the discount. the journal entry to record the first interest payment is: multiple choice debit bond interest expense $32,000; credit cash $32,000. debit bond interest expense $15,750; debit discount on bonds payable $250; credit cash $16,000. debit bond interest expense $16,000; debit discount on bonds payable $250; credit cash $16,250. debit bond interest expense $16,000; credit cash $16,000. debit bond interest expense $16,250; credit cash $16,000; credit discount on bonds payable $250.

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The journal entry to record the first interest payment is: multiple choice debit bond interest expense $32,000; credit cash $32,000. debit bond interest expense $15,750.

Interest expense refers to the cost of borrowing. This is the price the lender charges the borrower for using the lender's money. In the income statement, interest expense can represent the cost of borrowing from banks, bond investors, and other sources of funds.

Interest expense is the cost of funds borrowed by a company. Interest expense is a non-operating expense recognized in the income statement. It represents interest paid on borrowings such as bonds, loans, convertible bonds, or lines of credit.

Interest expense is the cost of funds borrowed by a company. Interest expense is a non-operating expense recognized in the income statement. It represents interest on borrowings such as bonds, loans, convertible bonds and lines of credit.

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peter told the sales staff that they had been receiving many complaints that the packaging on the coffee products was tearing open during transport and the company was working to replace the packaging as soon as possible. which function of packaging is peter discussing with his staff?

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Sales staff personnel. the ones in a business who're responsible for income. form of: body of workers. personnel who help their advanced in carrying out an assigned assignment.

A sales crew is a group of individuals who sell a employer's providing to leads and customers. they may be answerable for assembly the business enterprise's business's boom goals by selling merchandise, offerings, or subscriptions. Now, no two income teams are alike.

A income job is a career wherein a person is accountable for offering and promoting services and products. In a income activity, you're usually chargeable for generating leads and assembly sales dreams. you may be expected to negotiate contracts with clients, deliver income presentations and supply product demonstrations.

Businesses need to no longer underestimate the importance of their income group and the essential function they play in an organization's boom. sales teams not handiest boom sales but actually have a robust impact on brand recognition, lengthy-term purchaser relationships, retention of clients, and standard business boom.

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a firm in a perfectly competitive market maximized profit by setting its output so that

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A firm in a perfectly competitive market maximized profit by setting its output so that it can calculate the optimal level of output at which its Marginal Cost (MC) = Market Price (P).

How perfectly competitive firms make output decisions?

A fully competitive firm's total revenue grows smoothly at a constant pace dictated by the current market price as it consistently generates more production.

For a fully competitive business, profits will be highest—or losses will be lowest—at the output quantity where total revenues surpass total costs by the largest margin, or when total revenues fall short of total costs by the narrowest margin.

The only significant choice a fully competitive corporation must make is how much product to create.

Total income less all costs equals profit.

Profit is equal to (Price)(Amount Produced)/(Average Cost) (Quantity produced)

A totally competitive corporation is unable to control the price it charges because it must accept the price for its production that is established by the supply and demand for the product in the market.

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Which one of the following is not an advantage of having plants to manufacture athletic footwear in all four geographic regions?
a. Increased ability to achieve a low manufacturing cost advantage over rivals having plants in or geographic regions
b. Increased ability to reduce having plants in all four geographic regions typically reduces a company's footwear shipments into North America Europe-Africa, Latin America, and the Asia-Pacific from plants outside these regions
c. Increased ability to achieve lower reject rates and lower labor costs per pair produced rivals having only 1, 2, or 3 plants l

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The correct option is b. Increased ability to reduce having plants in all four geographic regions typically reduces a company's footwear shipments into North America Europe-Africa, Latin America, and the Asia-Pacific from plants outside these regions

The study of places and the interactions between people and their environs is known as geography. Geographers study the surface of the Earth and the various human societies that live there. The study of the Earth is the definition of geography. The study of the locations of the states is an illustration of geography. The climate and natural resources of the area are examples of geography. Example of a geographic sentence. Geographic seclusion has helped state businesses in several ways. She was only exposed to a limited portion of the biosphere because she spent her entire life in the same area. The release of Charles Tissot's Geographic comparison gave them a firm platform (1884).

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a special form of licensing in which one company grants another company the right to market its product in accordance with its standards in exchange for a financial commitment is called

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Its standards in exchange for a financial commitment is called franchising.  Under an international franchise agreement, a company (the franchisor) grants a foreign company (the franchisee).

The right to use its brand name and market its products or services. The franchisee is responsible for all operations but agrees to operate under the business model set by the franchisor. A franchise system can increase purchasing foreign company efficiency through economies of scale. Some or all of the required products are provided by either a franchisor or a trusted supplier. Franchisees can often also benefit from volume discounts. Promotional and marketing support. We sell the rights to use that name and idea.

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draw the expected edman degradation product of lys-gly-met-ala after one cycle.

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The coupling reaction, cleavage reaction, and conversion step are the three processes that make up the Edman degradation process.

The Edman degradation may be performed to progressively identify the amino acids starting from the N-terminal amino acid of the molecule since it does not break the peptide bonds in the protein. The protein sequencer, or automated Edman degradation, is a commonly used tool nowadays that can sequence peptides up to 50 amino acids. Pehr Edman created the Edman degradation technique to sequence the amino acids in peptides. The peptide link between the other amino acid residues is not broken throughout the process of labeling and cleaving the amino-terminal residue from the peptide.The N-terminus amino acid is sequentially released from the peptide during Edman degradation as a PTH derivative, and the successively formed PTH derivatives may be recognized by chromatographic methods or electrophoresis31,32.

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an adjusting entry for accrued expenses, such as wages expense, will include a credit to a(n) account. multiple choice question. contra asset asset liability

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An adjusting entry for accrued expenses, such as wages expenses, will include a credit to a(n) account: a. is the same journal entry as recording revenue on the account.

Personal expenses are costs that are beyond your tuition and fees, room and board, books and supplies, and transportation. Personal expenses include necessities like laundry, cell phone service, clothing, personal care products, prescriptions, car insurance and registration, recreation, and more.

An expense in accounting refers to the money spent and the costs incurred by a company in pursuing revenue. Simply put, account expenses are the costs involved in running a business, and collectively they contribute to the activities involved in generating profit.

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the primary difference between leaders and managers is that leaders are concerned with doing the right thing, while managers are concerned with doing things right. group of answer choices true false

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True, A leader is concerned with people, whereas a manager is concerned with processes and workflows.

A leader is a change agent, which is why he or she promotes such change for the benefit of his or her subordinates as well as the organization. A manager, on the other hand, responds to changes in the business environment.

In general, a leader's role is to coach, guide, and inspire others. They motivate teams in difficult situations and mentor individuals as they advance in their careers. Individuals are managed by a leader in order to keep teams on track and working toward common goals. They promote a collaborative culture and set a good example.

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a spending variance is the blank . multiple choice question. actual amount spent projected amount to be spent difference between what a cost should have been at the actual level of activity and the actual amount of the cost difference between the budgeted cost of the item and the actual cost of the item

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The difference on an expense's cost and what it should have been given the proper level of fitness is known as the budget variance. the item's actual price as compared to its projected price

What does budget cost accounting mean?

The process of developing a financial strategy and budgeting using cost projections is known as cost budgeting. A budget is a tool for managing money that professionals can utilize. Budgeting by cost entails adding up all anticipated expenses for a predetermined time frame.

What does project management budgeted cost mean?

Cost budgeting is a strategy used in project management to estimate the expenses or required efforts for initiatives, work packages, or activities. Estimating expenses, establishing a fixed budget, or controlling and managing the differences between actual and projected expenditures are all included in cost budgeting.

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what is full employment? a. when the unemployment rate is less than 2 percent b. when there is no cyclical unemployment c. when no one is unemployed d. when there is no frictional unemployment

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Full employment is b. while there may be no cyclical unemployment .

The required details about Full employment is mentioned in below paragraph.

Full employment is a scenario wherein there may be no cyclical or deficient-call for unemployment. Full employment does now no longer entail the disappearance of all unemployment, as different styles of unemployment, specifically structural and frictional, might also additionally remainFull employment is the scenario wherein absolutely everyone who're to be had and attempting to find paintings can discover a task on the triumphing remuneration costs and conditions.Full employment is an financial scenario wherein all to be had exertions sources are getting used withinside the maximum green manner possible. Full employment embodies the best quantity of skilled and unskilled exertions that may be hired inside an financial system at any given time.

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which problems did critics fear that nafta would cause? multiple select question. competition from other nations building plants in mexico higher unemployment and a lower standard of living in mexico massive loss of jobs in the united states massive migration of u.s. firms to mexico

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The critics fear that NAFTA would cause :

Competition from other nations building plants in Mexico

Massive loss of jobs in the United States

Massive migration of U.S. firms to Mexico.

North American free trade agreement (NAFTA) set up a unfastened-exchange region in North the us; it was signed in 1992 by using Canada, Mexico, and the usa and took effect on Jan. 1, 1994. NAFTA right now lifted tariffs on the general public of products produced by means of the signatory nations.

Amongst its 3 member countries, NAFTA eliminated price lists and other change limitations to agricultural and manufactured goods, in conjunction with offerings. It also removed funding restrictions and guarded highbrow belongings rights.

The settlement came into pressure on January 1, 1994. The goal of NAFTA is to eliminate all tariff and non-tariff boundaries of change and funding between the us, Canada and Mexico.

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hoosier incorporated is an indiana corporation. it properly included, deducted, or excluded the following items on its federal tax return in the current year: item amount federal treatment illinois income taxes $ 33,473 deducted on federal return indiana income taxes $ 18,400 deducted on federal return ohio commercial activity tax $ 3,960 deducted on federal return depreciation $ 42,000 deducted on federal return illinois municipal bond interest $ 9,920 excluded from federal return indiana municipal bond interest $ 15,500 excluded from federal return federal t-note interest $ 2,460 included on federal return state depreciation expense was $52,000. hoosiers federal taxable income was $152,300. calculated hoosiers indiana state tax base. multiple choice

Answers

In the above case, the federal income would be  $199,633

How does this occur?

An annual tax return you submit to the IRS on Form 1040, U.S. Individual Income Tax Return, is known as a federal tax return. It displays your income for the tax year as well as your tax payments. Its objective is to demonstrate that you fulfilled your duty to reimburse the US government.The main federal income tax form used by taxpayers to report their income to the IRS, claim tax deductions and credits, and determine their tax refund or tax liability for the year is called Form 1040, formerly known as the "U.S. Individual Income Tax Return."

$150,300 + $33,333 (Illinois income taxes paid) + $18,500 (Indiana income taxes paid) − $10,000 (depreciation adjustment) + $10,000 (Illinois interest) − $2,500 (federal T-Note interest).

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what legal considerations exist with respect to trade regulations, international contract formation, employment and human rights issues, and prohibited activities in the international environment?

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The ones engaged in international business must be privy to prohibited activities because excessive legal considerations and consequences are possible. as an example, paying bribes to get matters performed is not accredited.

The maximum commonplace barrier to alternate is a tariff–a tax on imports. price lists raise the charge of imported items relative to domestic items (right produced at domestic). every other common barrier to exchange is a government subsidy to a particular domestic industry. Subsidies make those items less expensive to supply than in foreign markets.

Ethics relate to principles, requirements of behavior, and 'doing the proper element'. Legal considerations will act in a socially accountable way, doing what's proper, even supposing it is not required to do so via regulation or if you want to maximize profit.

The attention which is the gain of the contract for one birthday party (say, receiving money) is the load of the opposite (say, paying cash). without consideration being given by each party to the settlement, the contract can't be legally binding.

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clannad company produces speakers for pa systems. the costs are as follows: description and costs description cost dm/unit $10.00 dl/unit $14.00 variable oh/unit $5.00 fixed oh/unit $3.00 clannad currently produces and sells 4,000 units per year, and has a capacity of 5,000 units. enya, inc. has offered a one-year contract to supply parts at a cost of $30.00/unit. if clannad accepts, it will reduce fixed costs by 50% and will be able to rent unused space to another company for $18,000 per year. what is the impact on clannad's profits if it accepts the offer.

Answers

Clannad company produces speakers for pa systems. the costs are as follows: description and costs description cost dm/unit $10.00 dl/unit $14.00 variable oh/unit $5.00 fixed oh/unit $3.00 Clannad currently produces and sells 4,000 units per year.

Relevant cost to make:

= ($10 + $14 + $5 + $1.50) X 4,000

= $122,000

Relevant cost to buy:

= ($30 X 4,000) - $18,000

= $102,000

The cost to buy is less than the cost to make.

Profits will increase if bought.

= $122,000 - $102,000

= $20,000

increase of $20,000

Cost in its singular form refers to the sum of a total group costs refer to all of the pieces within that group. For example “the cost of a service includes material costs and labor costs.” From legal contracts to discussions of budgets, the difference between “cost” and “costs” often befuddles people.

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the blade division of dana company produces hardened steel blades. approximately one-third of the blade division's output is sold to the lawn products division of dana; the remainder is sold to outside customers. blade division's estimated sales and cost data for the year ending june 30th are as follows: sales to lawn products division sales to outsiders revenue $ 15,000 $ 40,000 variable costs 10,000 20,000 fixed costs 3,000 6,000 gross margin $ 2,000 $ 14,000 unit sales 10,000 20,000 the lawn products division has an opportunity to purchase, on a continual basis, 10,000 blades (of identical quality) from an outside supplier, at a cost of $1.25 per unit. assume that the blade division cannot sell any additional products to outside customers. assume, too, that there are no short-term avoidable fixed costs. based solely on short-term financial considerations, should dana allow its lawn products division to purchase the blades from the outside supplier, and why?

Answers

$7500 will be used by its lawn goods business to buy the blades from a third party supplier.

What is Gross margin?

Net revenues less the cost of items sold constitute gross margin (COGS). To put it another way, it's the amount of money a business keeps after paying the direct costs involved in making the products it sells and the services it offers. A corporation maintains more money the larger its gross margin, which it may utilize to cover other expenses or pay off debt. Gross revenue less returns, allowances, and discounts equals net sales.

Each dollar of sales that the firm keeps after deducting COGS is represented by the gross margin, which is also known as gross profit.

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Which type of bank account is mostly used to save money?

Answers

Answer:

Savings account

Explanation:

Well, it's in the name!

which of the following occurs during the loosening phase of an international transfer but not during a domestic transfer? a. the individual may be seen as a less committed, short-time employee by others. b. the company or the individual initiates the idea of a transfer. c. the individual and family receive cultural and/or language training. d. the individual tries to finish projects and pass on information to others.

Answers

The individual and family receive cultural and/or language training  occurs during the loosening phase of an international transfer but not during a domestic transfer.

What is domestic?Housework refers to  home, home, domestic affairs, the Joy of domestic work.Devote yourself to home life or household chores. No longer wild. Domesticated; Tamed: pets. Domestic Trade. Domestic is generally meant to refer to an individual's family, home, or country of origin. Domestic work is work done at home - A domestic worker is someone who works in a household, such as a housekeeper. A nanny or a maid. Domestic is also used to refer to products made in your country, matters related to your country.It does not include purposes related to the yard, lawn, playground, or  pool  to which it belongs.

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the practice of requiring someone to buy two or more items together, rather than separately, is called

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Predatory pricing of asking someone to buy two or more products together, rather than separately, is called. tying. A company is involved in abusive pricing. In order to eliminate a rival from the market, a company could temporarily lower the price of its product.

Predatory pricing is a pricing strategy where a dominating corporation in an industry will intentionally lower the prices of a product or service to loss-making levels in the short-term. This is undercutting on a wider scale. Due to their inability to effectively compete with the dominant firm without incurring losses, existing or potential competitors within the industry are intended to be driven out of the market. Once competition has been eliminated, the dominant firm with a majority share of the market can raise prices to monopoly levels in the long run to make up for its losses.

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when a tax is levied on a good, a. government revenues exceed the loss in total welfare. b. there is a decrease in the quantity of the good bought and sold in the market. c. the price that sellers receive exceeds the price that buyers pay. d. all of the above are correct.

Answers

When a tax is levied on a good, d. both buyers and sellers are worse off.

A tax is a mandatory fee or financial charge levied by any government on an individual or an organization to collect revenue for public works providing the best facilities and infrastructure. The collected fund is then used to fund different public expenditure programs.

The IRS has tax brackets tied to income. The more you make, the higher your tax bracket and the greater the percentage of your income that's taxed. Folks with very low incomes or no income don't pay federal income taxes at all. You don't take your tax bracket and apply that percentage to your entire income, though.

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what is the relationship between beginning cash balance and ending cash balance for the current year

Answers

Answer:

While the cash flow statement shows cash coming in and going out, the balance sheet shows the assets and liabilities that result, in part, from the activities on the cash flow statement.

Explanation:

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me and my firend agreed to make car payments but my friend has stopped making paymenys and still has the car. what do i do?

Answers

After repeatedly asking your friend for the money back, being reasonable and understanding of their circumstances but ultimately being left out of pocket.

It might be challenging to say no when a buddy requests to borrow money. When a familiar person asks for money, your typical excellent judgment may suddenly go. We don't hesitate to say no or hang up on telemarketers who want to take our money. But if, after you've given the loan, your reliable friend vanishes equally soon, you'll be in trouble. Unfortunately, this situation occurs all too frequently; according to payment operator Paym, over 12 million people in the UK admit to arguing with friends or family members about money. Only loans of up to £100 were made to friends in about a third of these occasions. But how can you get money back from someone who borrowed it after constantly asking your friend for the money back, being reasonable and accepting of their situation.

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What is the artificial intelligence Data Mining platform that automatically analyzes the DoDs Governmentwide Commercial Purchase Card data to identify high-risk transactions?

Insight on Demand (IOD)
Procurement Business Intelligent Service (PBIS)
Joint Appointment Module (JAM)
Access Online

Answers

A) The artificial intelligence Data Mining platform, Insight on Demand (IOD) identifies high-risk transactions by automatically analyzing the DoD's Governmentwide Commercial Purchase Card data.

We are pleased to offer Mastercard and U.S. Bank's Insights on Demand (IOD), the DoD's data mining tool. PCOLS Data Mining and the Program Audit Tool have been superseded by this tool. This tool is used by A/BOs and A/OPCs to initiate cases, review and resolve system-generated cases, and fulfill all baseline data mining requirements.

IOD is a DM platform based on artificial intelligence that finds high-risk transactions by automatically analyzing DoD's GPC data.

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d. if you were equally likely to earn a return of 24%, 13%, 14%, 3%, or 3% in each year (these are the five annual returns for stock abc), what would be your expected rate of return? (do not round intermediate calculations.)

Answers

If your chances of generating a profit of 24%, 13%, 14%, 3%, or 3% each year were equal. Its arithmetic average, or 11.00%, would be your anticipated rate of return.

What does rate of return mean?

The net profit or loss of a venture over a given time period, expressed in terms of investment's starting cost, is known as a rate of return. (RoR).

How is rate of return determined?

The initial investment value is subtracted from the investment's actual level, and the result is divided by the original investment value to determine a simple return on investment. The result is divided by 100 to be reported as a percentage.

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a tax on water pollution is proposed for four factories in a manufacturing town of 100,000 people. the select board estimates the tax will reduce pollution to such an extent that it will benefit each resident by an equivalent of $600. the tax will also reduce profits to the town's four large factories by $3,000,000 each. how much should the town's citizens be willing to spend to ensure the passage of the tax?

Answers

The town's citizens be willing to spend $1,200 to ensure the passage of the tax. Taxes are obligatory payments made by a government organisation, whether regional or, local, or federal, to people or businesses.

Public projects and services like roads and schools, as well as programmes like Medicare and Social Security are funded by tax income.

In economics, taxes fall on whoever bears the expense of the tax, whether this is the taxed entity, such as a business, or the final users of the items produced by the business. Taxes of all kinds, including payroll taxes, state and federal income taxes, and sales taxes, need to be taken into account from an accounting standpoint.

In the given questions,

                           Reduction in profit of 1 company = $3,000,000

                           Total reduction in profit of 4 company = 4* 3,000,000

                                                                                            = $12,000,000

Now, this loss will be indirectly paid by citizens , since company will put this extra burden on people.

So, total cost for 100,000 citizen = $ 12,000,000

Cost for 1 citizen = $ 1200

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