1.It has been suggested that tax policy favors deductions for AGI compared to itemized deductions. Describe two ways in which deductions for AGI are treated more favorably than itemized deductions. 2. How is a business activity distinguished from an investment activity? Why is this distinction important for the purpose of calculating federal income taxes? 12. Explain the argument that the deductions for charitable deductions and home mortage interest represent indirect subsidies for these activities