Answered: A Higher business tax will (Please…

A Higher business tax will (Please select the best choice) (A) increase inflation (B) decrease inflation (C) does not directly affect economic growth or cannot be determined

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter1: An Introducti On To Taxation And Understa Nding The Federal Tax Law

Section: Chapter Questions

Problem 34DQ

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Question

A Higher business tax will (Please select the best choice)

(A) increase inflation
(B) decrease inflation
(C) does not directly affect economic growth or cannot be determined

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

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