Long-Term Interest Rates Are Affected by

question 43

Multiple Choice

Long-term interest rates are affected by

• A)interest rate expectations.
• B)preferred habitats.
• C)liquidity premiums.
• D)All of the above are correct.

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Definitions:

AMT Purposes

Refers to the specific calculations and adjustments applied to determine the Alternative Minimum Tax owed by an individual or corporation.

Standard Deduction

A fixed dollar amount that reduces the income on which you are taxed, varying by filing status, and used instead of itemizing deductions.

Positive Adjustment

An increase in the amount of reported income or expense, resulting in a higher taxable income.

AMTI

Alternative Minimum Taxable Income, which is calculated to ensure that taxpayers with large amounts of deductions, exemptions, and exclusions still pay a minimum amount of tax.