AlonnaG AlonnaG
  • 24-09-2018
  • History
contestada

What effect will the tax increase have on savings and investments in the economy

Respuesta :

saadhussain514
saadhussain514 saadhussain514
  • 30-09-2018

Answer

Increase in taxes will result in a decrease in savings and investment

Explanation

A government normally increases taxes to boost it's tax revenue but this also results in the decrease of savings and investments. Higher taxes leaves consumers with less disposable income which then discourages them from saving and investing.

Answer Link

Otras preguntas

Watson joins Holmes in his work because Watson is __________. a. learning to be a detective b. writing a book about Holmes c. fascinated by remarkable events d.
Angela is 5 inches shorter than Carter. Carter is 61 inches tal. If a = Angela's height, which equation can be solved to determine Angela's height?
Which words inthe sentence makes up the adverb phrase? We might ride our bikes over the bridge. a. We might b. Ride our bikes c. Over the bridge d. Might ride
What was Calvin’s idea of the “elect” and their place in society?
What is the simplest form of 96/64
Why might the European Allies have been more interested in punishing Germany than in creating a lasting peace?
Which of the following issues became an obstacle to the drafting of the United States Constitution?
which of the following suggestion is most likely to help you maintain and renew your emotional energy
What were the three major areas of reform in Wilson’s New Freedom?
Which conquistador led the Spanish conquest of the Inca empire?