Refer to the Diagrams

question 84

Multiple Choice

Refer to the diagrams. Other things equal, an interest rate increase will

• A) shift curve A to the right and shift curve B upward.
• B) shift curve A to the left and shift curve B downward.
• C) leave curve A in place but shift curve B downward.
• D) leave curve A in place but shift curve B upward.

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Definitions:

Capital Gains

refer to the profit made from selling an asset for more than its purchase price.

Quarterly Estimated Payments

Payments made to the IRS by self-employed individuals or entities that anticipate owing tax of $1,000 or more, paid in four equal installments throughout the year.

Estimated Payment

refers to tax payments made in advance throughout the year, based on an estimate of the taxpayer's annual income.

Corporate AMT Exemption

An exemption that prevents corporations from having to pay the Alternative Minimum Tax up to a certain threshold of income.