Explain the multiplier effect by analysing how a typical consumer would react to this tax cut and which other decisions this reaction would trigger in the economy.
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The government announces a cut in the income tax rate.
Explain the multiplier effect by analysing how a typical consumer would react to this
tax cut and which other decisions this reaction would trigger in the economy.
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- Of the following, the most likely effect of an increase in income tax rates would be to: decrease the savings rate? decrease the supply of loanable funds? increase interest rates ? all of the choices are correctExplain in your own words, how you believe a reduction in the General Consumption Tax (GCT) rate can positively and/or negatively impact the Jamaican economy.How is trumps policy affecting you. The Balance. Trumps tax plan and how it affects you: discuss how trumps fiscal policy is affecting you. What is the potential problem with a temporary tax decrease designed to increase aggregate demand if people know that it is temporary.
- Explain what happens in a small open economy when the government changes the tax laws to encourage investment by providing an investment tax credit.Of the following, the most likely effect of an increase in income tax rates would be to: A) Decrease the savings rate B) Decrease the supply of loanable funds C) Increase interest rates a. All statements are correct. b. Only one statement is correct. c. Only one statement is incorrect.The government will be decreasingincome taxes. To an entity producingluxury bags, it would: A. Expect lower economic growth and may plan to produce less of these bags.B. Expect higher economic growth and may plan to produce more of these bags.C. Expect lower economic growth and may plan to produce more of these bags.D. Expect higher economic growth and may plan to produce less of these bags.
- Some of the responses by governments to slow down the pandemic have had a negative impact on the tax revenue generation. Using examples from the case extract and in your country, analyse how these responses by government have impacted negatively on tax revenue.. Why might revenues generated from the tax fall short of expectations? 2. Do you think that Philadelphia should or shouldn't have adopted the tax to fund pre-K education? Support your brief argument with economic concepts covered in the course. 3. Suppose a government wants to use tax policy to persuade people to not consume certain products or services. Suppose, the government has limited resources and can only enforce (or collect) a limited number of taxes. Should that government target goods or services that have an elastic or inelastic price elasticity of demand (ED)? Why? 4. Suppose the goal of a government is to raise as much money as possible to fund governmental services. Should the government target goods and services that have an inelastic or elastic ED? Why?If you want to cut taxes and deficits, just what programs are you prepared to cut?
- When a government lowers taxes it is employing ________. A) fiscal policy B) monetary policy C) domestic policy D) the law of one price2. Which of the following is a fiscal policy that would increase aggregate demand in the short-run? (A) A decrease in personal income taxes (B) A decrease in government spending (C) An increase in corporate income taxes (D) A purchase of government bonds by the Federal ReserveWrite a short reflection on taxes, who should carry the burden and who benefits from it?