Mr. and Mrs. Compton paid $9,280 of medical expenses that were not reimbursed by their private insurance provider. Required: Compute the after-tax cost of these expenses assuming that the Comptons itemize deductions on their joint tax return, their AGI is $116,000, and their marginal tax rate is 24 percent. Compute the after-tax cost of these expenses assuming that the Comptons itemize deductions on their joint tax return, their AGI is $424,000, and their marginal tax rate is 35 percent. Compute the after-tax cost of these expenses assuming that the Comptons take the standard deduction on their joint tax return, their AGI is $39,000, and their marginal tax rate is 12 percent.

Complete the sentences. upper a decrease in current income taxes the supply of loanable funds today because it a. decreases; increases disposable income, which decreases saving b. has no effect on; doesn't change expected future disposable income c. decreases; decreases expected future disposable income d. increases; increases disposable income, which encourages greater saving upper a decrease in expected future income a. increases the supply of loanable funds today because households with smaller expected future income will save more today b. has no effect on the supply of loanable funds c. decreases the supply of loanable funds because it decreases wealth d. decreases the supply of loanable funds today because households with smaller expected future income will save less today