Ted, Who Is Single, Owns a Personal Residence in the City.He

question 64

Multiple Choice

Ted, who is single, owns a personal residence in the city.He also owns a condo near the ocean.He uses the condo as a vacation home.In March, he borrowed $50,000 on a home equity loan and used the proceeds to acquire a luxury automobile.During the year, he paid the following amounts of interest. $$\begin{array} { l r } \text { On his personal residence } & \$ 15,500 \\\text { On his condo } & 6,200 \\\text { On the home equity loan } & 4,800 \\\text { On credit card obligations } & 1,700\end{array}$$ What amount, if any, must Ted recognize as an AMT adjustment in 2019?

• A)$0
• B)$4,800
• C)$6,200
• D)$11,000

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Definitions:

Fiscal Policy Measures

entail government actions using taxation and spending policies to influence macroeconomic conditions, including inflation, employment, and economic growth.

Inflationary Gap

A situation where aggregate demand in an economy outpaces aggregate supply, leading to inflation and a potential overheating of the economy.

Federal Budget Deficit

A federal budget deficit occurs when a government's expenditures exceed its revenues within a given fiscal year, leading to the need for borrowing.

Fiscal Policy Measures

Actions by the government that include implementing taxes and allocating funds to impact economic conditions.