One of the provisions of the second stimulus bill increased the amount of investment spending that firms were allowed to depreciate for tax purposes from 50% to 100%
This is just one of over 100 temporary tax provisions affecting firms in the United States. Temporary tax breaks such as the increase in depreciation will tend to A) increase investment expenditures because the tax breaks will entice firms to leave other countries and invest in the United States.
B) have little impact on current investment expenditures since the tax breaks are temporary.
C) increase investment expenditures in both the short run and the long run, since investment is irreversible.
D) increase investment expenditures in the short run but also increase the uncertainty and volatility of investment since the tax breaks are temporary.
D
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a. theory y b. theory x c. hawthorne effect d. tqm
The Keynesian transmission mechanism could be blocked by either interest-insensitive investment or by the liquidity trap
Indicate whether the statement is true or false