The negative income tax (NIT) is a possible tax reform that is often debated in combination with the guaranteed basic income (GBI). It is a mechanism in which taxation is paid in the opposite direction for incomes below a certain threshold; in other words, earners above that threshold contribute .....
The earned income credit (EIC), also known as the earned income tax credit (EITC), is a tax credit available to low-to-moderate-income working families in the United States, especially those with children. It’s a refundable tax credit that reduces the amount of tax owed on a dollar-for-doll.....
After paying local, state, and federal taxes, disposable income, also known as disposable personal income (DPI), is the money left over from an individual’s salary. Personal income minus personal current taxes equals disposable personal income, according to national accounting definitions. .....
The marginal propensity to save (MPS) is the percentage of additional income that customers save. It’s the slope of the line that connects saving and profits. If a household gains an extra dollar and the marginal tendency to save is 0.35, the household can spend 65 cents of that dollar and .....
The average propensity to consume (APC) is the proportion of total disposable income spent on goods and services by households. For both individual consumers and economists, it is a significant term. The ratio of gross consumption to total disposable income is known as the consumption-to-disposab.....
The change in imports triggered by a change in income is referred to as the marginal propensity to import (MPM). The theory is that as companies and households’ incomes rise, so does the demand for products from other countries, and vice versa. According to this theory, as income rises, the.....
The marginal propensity to consume (MPC) is a metric used in economics to quantify induced consumption. It measures how responsive consumption in a given economy is to unitize shifts in income levels. It is characterized as the percentage of an increase in pay that a customer spends on purchasing.....
The macroeconomic economic theory of total expenditure in the economy and its impact on productivity, wages, and inflation is known as Keynesian economics (/ˈkeɪnziən/ KAYN-zee-ən; sometimes Keynesianism, named after the economist John Maynard Keynes). It is a school of economic thought that .....
Monetarist theory, also known as monetarism, is an economic concept that claims that changes in the money supply are the most important determinants of economic growth and business cycle activity. Monetarist thinking is based on the premise that the size of the money supply is more significant th.....
Price elasticity measures the responsiveness of the quantity demanded or supplied of a good to a change in its price. The price elasticity of supply (PES or Es) is a measure used in economics to show the responsiveness, or elasticity, of the quantity supplied of a good or service to a change in i.....
The Internal Revenue Service (IRS) in the United States uses depreciation recapture to raise taxes on the sale of depreciated land. If the sale price of an asset exceeds the tax base or adjusted cost basis, it is calculated. All in all, in light of the fact that the IRS permits a citizen to deduc.....
The NASDAQ is a stock exchange headquartered in New York that focuses on technology firms. The Nasdaq capital market is one of the Nasdaq Composite Index’s three levels. The Stock Market tier is an equity market for Nasdaq Composite Index firms with the lowest market capitalization. Posting.....